In the past, one of the options available to someone selling real estate in Pennsylvania was to take back a private mortgage if, for some reason, a mortgage from a bank was not an option. However, a 2009 change in Pennsylvania law prohibits this practice unless the person taking back the mortgage is a licensed mortgage broker.
One key exception to this new rule is if the property is being sold to a family member (i.e., a parent sells a house to a son or daughter).
However, if there is no familial relationship and a bank mortgage is not an option, the alternatives include a lease-purchase agreement, or an installment sale. Before deciding to proceed with either of these options, however, you should discuss the advantages and disadvantages with someone qualified to help you understand the issues.