How do you qualify for a carryback loan?

To qualify for a carryback loan, you must first find a home with a carryback option. This is a loan extended from a seller, typically a small financial company or individual rather than a large bank. Not many homes will come with a carryback option; the ones that do may be bank-owned properties. The seller is taking on a large risk by issuing you the loan to make a purchase from the seller itself. As a result, you must be willing to pay high fees in order to receive a carryback loan. Other than this requirement, the requirements for a carryback loan will vary largely from seller to seller.