Are you looking to sell your house? Maybe you’re thinking about selling, and maybe you’re thinking about seller financing. If you have a mortgage on your house you might also be considering and asking yourself “Can I do owner financing in if I have a mortgage on the property?” We have many people asking this … read this blog post so you can get strategies moving forward.
Here are your options:
People who are trying to sell their houses have a few options. The first is to list their home through an agent. Or they can just list it themselves and they can also sell directly to a buyer. And, many homeowners found out that they can also do “owner financing” or “seller financing”. This should allow them to sell to a buyer and collect regular payments to pay the house:
- The buyer will pay a down payment
- The buyer will pay regular monthly payments
- When the full amount of the house or the agreed amount is paid.
The title will revert to the buyer
Property owners really like it because they said it is a great way to sell and find even more prospective buyers – especially those who were not approved by banks for traditional home financing. They also love it because it give them more choice plus it’s not going to impact their creditworthiness and credit score.
These should work if you own your house outright! But how about if you have a monthly mortgage? Maybe you’re wondering, “Can I do owner financing in if I have a mortgage on the property?”
Well, it’s COMPLICATED.
Seller financing with a mortgage
There are a number of states where you can create something called “wraparound mortgage”. You will extend your mortgage to a buyer at a higher rate of interest while you are still paying your own monthly mortgage to the lender. But this is not legal to all states and every situation. So make sure to research and study all the additional clauses that you should be aware of.
Can I Do Owner Financing if I Have a Mortgage on the Property? – You have choices
If you really can’t sell with seller financing because of your home mortgage, don’t worry, you still have plenty of options.
You can do rent-to-own. It has some similarities like having ongoing payments and owning the house. There are also several differences, like there might not be a down-payment and the buyer will still have to qualify for a mortgage from a lender or a bank at the end of the pre-established rental term
If this still doesn’t work. Then you can get in touch with us! Talk to us about your house. As an expert who buys and sells houses for quite some time now, we are aware of a number of options that you may not know. We can definitely walk you through these options and we will help you. We might be able to connect you with someone who can definitely assist you, too.