Seller financing is most commonly utilized when:

Seller financing is most commonly utilized when market interest rates are high. In a high-interest-rate environment, traditional lenders may impose higher borrowing costs, which can deter potential buyers from pursuing a purchase. As a result, sellers may offer financing options directly to buyers as a way to facilitate the sale. This arrangement can make the property more attractive to potential buyers who might not qualify for conventional financing or who are looking to avoid high loan rates.

Seller financing provides flexibility in terms of interest rates and repayment structures that can be more favorable compared to what buyers might find with traditional lenders. This is especially beneficial in a high-interest-rate market, as both sellers and buyers can come to agreeable terms that facilitate the sale while countering the challenges posed by high borrowing costs.

In contrast, low-interest rates typically make traditional financing more attractive, reducing the need for seller financing. Additionally, while factors like a seller being a veteran or buyers having poor credit may influence financing decisions, they are not the primary drivers for utilizing seller financing.