Do you feel weighed down by the idea of selling your home? The notion of seller financing may have crossed your mind, but the lingering doubt of having a mortgage on the property leaves you feeling uncertain and asking, “Can I really do owner financing in FL with a mortgage still in place?” We understand your fears and are here to comfort you! In this blog post, we’ll chase away your worries and arm you with useful information and tactics to make the selling journey a seamless and triumphant one. Keep reading, and we’ll be your faithful companion every step of the way.
You have options
Excited homeowners who are considering selling their beloved home have a plethora of choices. They can showcase their home through a skilled agent, or they can take the reins and list it themselves, or they can sell directly to a eager buyer. And, many homeowners are uncovering a straightforward strategy called “owner financing” or “seller financing” that empowers them to sell their home to a grateful buyer and receive steady payments that pay off their cherished home:
- The buyer pays a down payment
- The buyer pays regular monthly payments
- When the agreed-upon price is paid, the title reverts to the buyer
Homeowners adore “owner financing” or “seller financing” because it’s a fantastic opportunity to sell their home and attract even more buyers – including those who may not qualify for traditional bank financing. Home buyers are delighted with it as it expands their options and they don’t have to sacrifice their credit score to secure their dream home.
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 FL if I have a mortgage on the property?”
The short answer is: it’s complicated.
Seller financing with a mortgage
Thrilling news! Did you know that in certain states, you have the chance to forge a “wrap around mortgage” where you can provide a mortgage to a buyer at a higher interest rate while still fulfilling your own mortgage payments to the bank? However, it’s crucial to be aware that this possibility may not always be attainable or permissible in all states, so make sure to carefully examine the extra clauses and regulations before taking any action.
Can I Do Owner Financing if I Have a Mortgage on the Property? – You have choices
If you’re feeling discouraged because you’re unable to sell through seller financing due to a mortgage, have hope, you have other alternatives…
An exciting possibility that could be the perfect fit for you is called rent-to-own, which shares some similarities (such as steady payments and eventual ownership of the house) and some differences (there may not be a down-payment required and the buyer must meet the qualifications for a mortgage from a bank at the conclusion of the previously agreed upon rental term).
“Are you considering owner financing but feeling overwhelmed with the thought of having a mortgage on your property? Let us ease your worries! As seasoned professionals in the real estate industry, we are privy to numerous options that you may not have even heard of. Allow us to guide you through these options and offer our support, or connect you with someone who can assist you in achieving your goals. Don’t hesitate to reach out to us and have a chat about your property!”