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…
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:
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.
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.
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.
If you're a homeowner in Phoenix looking to sell your house quickly, you're in the right place! We understand that life sometimes throws unexpected challenges at us, and selling your house fast becomes a necessity. In such situations, working with a real estate investor like The Trusted Home Buyer can be a game-changer. In this […]
Selling a house that needs extensive renovations can be a daunting task. Investing more time and money into a property you want to part with can be very stressful. However, there's a solution that can make the process smoother and more profitable: working with a real estate investor. In this blog post, we'll explore how […]
Selling a home in Arizona can be a complex and daunting task, with various decisions to make and preparations to consider. However, a streamlined solution has gained considerable popularity: selling your home "as is." This approach offers a range of advantages, including convenience, speed, and the ability to avoid costly repairs. In this article, we'll […]
Are you a tired landlord looking to offload your rental property and simplify your life? Selling your rental property to an investor might be the solution you've been seeking. The Trusted Home Buyer, specializes in helping landlords transition out of the rental market with ease. In this blog post, we will explore the benefits of […]
