What is Third-Party Owner Financing and How Does It Work?

5.15.2024 1:33 pm 0 Comment(s)

Are you in a situation where you've saved for a home but still can’t purchase one because your mortgage application has been denied by a conventional lender? If this is the case, third-party owner financing might be the solution for you. Regardless of your credit or situation, you can buy your dream home. In this blog post, we will share everything you need to know about third-party owner financing and how it can help you achieve your homeownership dream.

Understanding Third-Party Owner Financing

Third-party owner financing was introduced by TL Global founder Til Lowery. TL Global is a training company that helps home buyers learn how they can buy any single-family home they want with owner financing. This program is designed for financially disciplined home buyers who, for various reasons, don’t qualify for a conventional loan. These reasons could include foreign nationality, lack of verifiable income, self-employment, poor credit, or non-existing credit. Regardless of your credit or situation, you can buy any single-family home listed for sale on the market.

Requirements for Third-Party Owner Financing

To participate in the third-party owner financing program, there are a few requirements:

  1. Single-Family Homes Only: The program is applicable only for single-family homes.
  2. Loanable Condition: The home should be in a condition that makes it eligible for a loan.
  3. Reasonable Down Payment: You should have saved for a reasonable down payment. While you can buy any home with a reasonable down payment, TL Global also features listings that allow you to buy with lower down payment requirements. You can check out these listings here.

How Third-Party Owner Financing Works

Here’s how the process works:

  1. Pre-Approved Investor: A third-party investor, pre-approved for financing and vetted through the TL Global system, will use their credit to finance the home and then owner-finance that property to you.
  2. Deed Registration: The deed will be registered in your name as the home-buyer, while the investor will carry the financing for the duration of the loan or until you choose to refinance or sell.
  3. Monthly Payments: A note servicing agency will collect the monthly payments from you.
  4. Traditional Mortgage Features: In many ways, third-party owner financing is similar to traditional mortgage financing because of the following features:
    • Fixed monthly payments over 30 years
    • No balloon payments
    • No pre-payment penalties
    • The ability to refinance anytime with a conventional lender without worrying about pre-payment penalties
    • Credit score improvement as the note servicing agency reports your monthly payments to credit bureaus
    • Acceptance of all credit types
    • No income verification

Benefits of Third-Party Owner Financing

  1. Flexibility: This financing option offers flexibility, especially for those who do not qualify for traditional loans.
  2. Credit Improvement: Regular payments reported to credit bureaus can help improve your credit score over time.
  3. Ownership: You get to own your home and enjoy all the benefits of homeownership while making payments directly to the investor.
  4. No Surprises: The roles and responsibilities of each party are clearly spelled out, ensuring there are no surprises. An Owner Finance Specialist will walk you through every step of the process, so you know exactly what to expect.


As you can see, third-party owner financing is a transparent and flexible financing option for credit-challenged home buyers. If you want to learn more about our training program, fill out the form to download an eBook that explains in detail how the program works. Third-party owner financing could be the key to unlocking your dream of homeownership, regardless of your credit situation or financial history. By understanding how it works and what to expect, you can make an informed decision and take the first step towards owning your home.

Hot Owner Finance Deals That Won't Last Long! Low Down Payment and 7-Day Move-In

Request a tour of this owner-finance home listing