How Important Is Your Borrower’s Credit When You Are Selling Your Seller Financed Mortgage Note?
1:04 watch · September 19, 2026 · With Dawn Bearden, Moxxie Asset Group
Why Borrower Credit Carries So Much Weight
- ✓ About 40% of the grade — Borrower credit is the single biggest factor in how a note buyer prices your seller financed mortgage note.
- ✓ 650 is the threshold — Credit above 650 reduces the risk of the note. The higher the score, the stronger your offer.
- ✓ 800 scores are not expected — Most buyers using seller financing don’t have perfect credit — but decent credit still matters a great deal.
- ✓ Below 650 costs you — A borrower under roughly 650 makes the note higher risk, which makes your note less valuable when you sell.
- ✓ Pull credit before you close — Running your borrower’s credit up front preserves both the integrity and the resale value of your note.
Full Video Transcript
Why Your Borrower’s Credit Matters
Hi, I’m Dawn with Moxxie Asset Group. We’re going to talk today about how important your buyer/borrower’s credit is when you’re creating a seller financed mortgage note.
When you go to sell that note, a note buyer is going to look at your borrower/buyer’s credit.
Credit Is About 40% of the Grade
It’s about 40% of the grade of how much we pay for the note. That makes it the single largest factor in what your note is worth on the secondary market.
We Look for Credit Above 650
So, we look for credit above 650 — which reduces the risk of the note. Obviously, the higher the better.
We do understand that people who are getting seller financing probably don’t have 800 credit scores. We are aware of that, but we do want people to have decent credit. So, this is very important.
Below 650 Means a Lower Offer
If you hold a note for someone who has credit of less than about 650, then it’s going to make your note less valuable — because it is higher risk.
Always Pull Your Borrower’s Credit
So, remember, always pull your borrower’s credit if you’re ever planning on selling that note in the future.
It preserves the integrity of the note and it preserves the value of the note for you.
Want to Know What Your Note Is Actually Worth?
Send us your note details and our team will walk you through the numbers — no obligation, no pressure. When all documents are received and title is clear, most closings run 3–5 weeks. Have your promissory note and your mortgage or deed of trust (depending on your state) handy.
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