Owner financing(also known as seller financing) is the transaction done between the seller of the house and a buyer directly. Here, the seller finances the property’s purchase directly with the person who is willing to buy the property. When the property is being financed by the owner, the interest rates and the tenure periods become more flexible. This kind of financing eliminates a bank intermediary and like in banks, eligibility criterias will not come into play. 

Sellers would have to take on the default risk of the buyer. The seller sometimes might require a prepayment to compensate for the risk associated with lending. But sellers get a good way of investing. Sellers can also get lump sum payments right away. By any chance if the  buyer defaults, the seller gets to keep the prepayment cash and the house too. For buyers, there won't be any bank fees to deal with and is a good option for buyers who are not able to secure a home loan.