The Trusted Home Buyer Logo602-456-4440

Can I Do Owner Financing In AZ If I Have A Mortgage On The Property?

Martin Boonzaayer

December 5, 2019

Do you have a house to sell? Perhaps you’re thinking about selling, and maybe you’re thinking about seller financing. But if you have a mortgage on your house, you might be wondering, “can i do owner financing in AZ if i have a mortgage on the property?” We get this question a lot so we decided to answer that question here… Keep reading in this blog post and we’ll answer that question and give you some strategies to move forward…

You have options

Homeowners who are thinking about selling have several options. They can list their home through an agent, or they can list it themselves, or they can sell directly to a buyer. And, many homeowners are discovering a simple strategy called “owner financing” or “seller financing” that allows them to sell their home to a buyer and collect regular payments that pay off the house:

  1. The buyer pays a down payment
  2. The buyer pays regular monthly payments
  3. When the agreed-upon price is paid, the title reverts to the buyer

Homeowners love it because it’s a great way to sell and a great way to find even more buyers – including those who might not be able to get traditional bank financing. Home buyers love it because it means more choices for them and they don’t have to necessarily impact their credit score to get a house.

If you own your house outright, you can do a seller financing agreement. But what happens if you have a mortgage? Maybe you’re wondering, “Can I do owner financing in AZ if I have a mortgage on the property?

The short answer is: it’s complicated.

Seller financing with a mortgage

In some states, you can create something called a “wraparound mortgage” in which you extend a mortgage to a buyer (usually at a higher rate of interest) while still paying your own mortgage to the bank. However, this is not legal in all states and all situations, and there are 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’re unable to sell with seller financing because of a mortgage, you have other options…

An alternative that might work for you is called rent-to-own, which has some similarities (such as ongoing payment and you own the house) and some differences (there might not be a down-payment and the buyer needs to qualify for a mortgage from a bank at the end of the pre-established rental term).

If you are thinking about accepting owner financing but you still have a mortgage on your property, here’s another option for you: Get in touch with us and talk to us about your property. As experts in buying and selling real estate, we are aware of a number of options that you might not know about. We can walk you through those options and help you out ourselves or we can connect you with someone who can help you.

Get in touch with us today by clicking here to fill out the form or by calling us at 866-488-9923.

Explore more

December 15, 2021
How To Sell A Hoarder Home

The traditional way of selling your home might work for some, but what if you are dealing with costly home repairs or own a lot of stuff. If your home is full of things that you have collected over the years, it can get overwhelming trying to navigate home showings, listings, and everything else that […]

Read More
December 10, 2021
The Merger and Acquisition of urapc.org and thetrustedhomebuyer.com

Now you might ask why would a home buying company like The Trusted Home Buyer acquire a domain with the name "urapc.org"? Good question and we will get back to it in a bit but first, let's talk about the history of this domain. The furthest record we could find about urapc.org dates back to […]

Read More
November 19, 2021
Write For Us

We welcome individual bloggers / Professional Writers / Freelancers to submit high-quality content. You can submit for consideration an original article that is not already published anywhere else, even on your website, with content based on your personal experiences and professional expertise. We will review the article and publish it if accepted. We reserve the […]

Read More
July 30, 2021
How to Sell Your House Webinar With Martin Boonzaayer
Read More
The Trusted Home Buyer Logo
Copyright © The Trusted Home Buyer
WE BUY HOUSES IN:

4.7 61 reviews