If you're looking for a Louisville real estate agent who actually knows seller financing, subject-to deals, lease options, and the rest of creative financing, you found one. I'm Rob Bergeron, Owner–Realtor at Winner Realty. I've been licensed in Kentucky since 2013, I've been part of 2,000+ transactions, and a good share of them closed on terms a bank would never have written. This page explains each option like you've never heard of it, then points you to the full guide on each one.
What "creative financing" means
Creative financing is any way to buy or sell a property that doesn't go through the normal path of a buyer getting a new bank loan. The seller, the existing loan, or a contract between the two sides does the job the bank usually does. It exists because plenty of good deals can't close the normal way: the buyer can't get approved, the seller owns the house free and clear and wants income instead of a lump sum, or the house won't pass a lender's inspection.
None of this is a trick. Every structure below is legal in Kentucky, has been for decades, and shows up at closing tables every week. The difference is whether your agent knows how to write it, what the title company needs, and where people get hurt.
The options, in plain English
Seller financing. The seller becomes the bank. The buyer makes payments to the seller instead of a lender, under a promissory note and a mortgage recorded at the county. Good for sellers who own the property outright and want monthly income and a higher price; good for buyers who can't get a conventional loan yet. Full guide: Seller Financing in Kentucky
Subject-to. The buyer takes over the house and keeps paying the seller's existing mortgage, which stays in the seller's name. The buyer gets the seller's old interest rate. The seller gets out from under a payment. The risk is real on both sides, and it has to be documented correctly. Full guide: Subject-To in Kentucky
Assumable mortgage. Some loans (FHA, VA, USDA) can be formally taken over by a new buyer with the lender's approval. The buyer gets the old rate, legally. Full guide: Assumable Mortgages in Louisville
Wraparound mortgage. A seller-financing deal where the seller still has a loan on the property. The buyer's payment to the seller "wraps around" the seller's own payment to the bank. Full guide: Wraparound Mortgages in Kentucky
Lease option (rent-to-own). The buyer rents the property with a contract giving them the right to buy it later at a set price. Part of the rent may count toward the purchase. Full guide: Lease Options and Rent-to-Own in Kentucky
Novation. An investor steps into the seller's shoes to fix and sell the property on the seller's behalf, splitting the upside. The seller stays on the deed until it sells. Full guide: Novation Agreements in Kentucky
Wholesaling and assignments. A buyer puts a property under contract, then sells the contract itself to another buyer for a fee. The paper is the asset. Full guide: Wholesaling Real Estate in Kentucky
Which one fits
- You own the property free and clear and want income: seller financing.
- You have a loan with a low rate and need out: subject-to, or an assumable mortgage if it's FHA, VA, or USDA.
- You have a loan and still want to seller-finance: wraparound.
- The buyer can't qualify today but will in a year or two: lease option.
- The house needs work and you don't want to do it: novation.
- You found a deal you don't want to keep: assignment.
Most of the time, the right answer is a combination, and that's where an agent who has written these earns their fee.
Why a licensed agent matters here
Creative deals go wrong in the paperwork, not the idea. A promissory note with no late-payment clause. A subject-to deal where nobody checked the due-on-sale clause or set up a servicing company. A lease option that's really a disguised sale in the eyes of a court. Kentucky has its own rules: the seller's disclosure form (KREC 402) still applies, the grantor pays the 0.1% transfer tax, and the deed and mortgage have to be recorded in the county where the property sits.
Winner Realty writes these with a title company and an attorney in the loop. Buyers and sellers both get a copy of everything. If a structure isn't right for your situation, we'll tell you.
Frequently asked questions
Is seller financing legal in Kentucky?
Yes. It's a promissory note and a recorded mortgage, the same documents a bank uses.
What interest rate do sellers charge?
Whatever the two sides agree to. In Louisville right now most seller-financed deals land somewhere between a bank rate and a hard-money rate, with a balloon payment in three to ten years.
Can I do subject-to on any mortgage?
Almost every mortgage has a due-on-sale clause, meaning the lender can call the loan when the property transfers. Lenders rarely do when payments are current, but it's a real risk and it has to be disclosed to everyone.
Do I need a lawyer?
For seller financing, subject-to, and wraparounds, yes. We'll bring one in.
Can Winner Realty find me a seller-financed property?
Yes. We keep a running list of seller-financing and lease-option listings in Kentucky, and OffMarket.deals posts creative-terms deals regularly.
Talk to someone who has done this
Text or email me with the property and the situation. Rob@thewinnerrealty.com, or text (502) 305-8915. If you'd rather read first, start with the seller financing guide.