Hello · The Real Estate Academy

Hello

I found out that any deals through seller financing has to be in line with the Applicable Federal Rate (AFR). The IRS sets the minimum AFR on a monthly basis. If the agreed upon rate falls below the minimum required rate for a specific month, the IRS will impute interest penalties on the seller.

Currently, the minimum rate for February 2026 is 4.7%. This a long term loan rate of at least 9 years.

Has anyone of you done a much lower interest rate?

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