Last updated: November 1, 2026
Glossary
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Plain definitions for the words that show up on listings. They are not legal definitions for your state, and they are not advice. The disclosures explain the limits.
Owner financing
The seller waits for part of the price and takes payments over time, usually with interest, instead of receiving the whole price at closing from a new bank loan.
Down payment
Cash paid at the start. The sites do not collect it. It is paid under the contract, not through these websites.
Seller note
The buyer’s written promise to pay the seller. It should state the amount, the interest, the payment, and what happens if a payment is missed.
Balloon
A lump sum due before the payment schedule would have paid the note off. A small monthly payment can hide a large balloon.
Subject-to
The buyer takes the property while the seller’s existing loan stays in the seller’s name. The lender may have a due-on-sale right. This is not the same as a loan the lender agrees to let the buyer assume.
Wraparound
The seller’s new note to the buyer wraps around an existing loan. The due-on-sale risk on that existing loan still matters.
Assumption
The lender agrees in writing that the buyer will take on the existing loan. An assumption the lender has not approved is not this.
Due-on-sale
A clause that can let a lender demand the whole loan because the property changed hands. It is the sharp risk in subject-to and wrap listings.
Lease option
A right to buy later, often paired with rent. The option fee and any rent credit exist only to the extent the contract says so.
Earnout
An extra part of a business price that is paid only if a later number, such as revenue, is hit. It is not guaranteed income.
Featured listing
A flat fee to pin one listing higher in search for 30 days. It is not a success fee.
Directory ad
A flat-fee card for a professional. It is not an endorsement, not a referral, and not proof of a license.
DSCR
Debt service coverage ratio. A rough comparison of income to the yearly debt payment. The calculator’s figure is an estimate, not an underwriting decision.