220. Can I Do Owner Financing In Texas If I Have A Mortgage On The Property?

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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 Texas if I have a mortgage on the property?” We get this question a lot so we decided to answer that question here… Keep reading 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. Homebuyers 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 Texas 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.

We Buy Houses Houston

There is a simple way to sell your house without an agent in Houston TX and without the added commissions and time. Sell your Houston house to local house buyers like us and avoid going through an agent. This can help you get your house sold fast and efficiently. We are home cash buyers in Houston Texas and pay all closing costs, the offer you get is the offer you get (no hidden fees either). We make it simple and efficient to work with us. See if your home is a good fit for us to buy. Get in touch with us today by clicking here to fill out the form or by calling us at 281-306-5191.

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