how does seller finance work when I still owe on a mortgage.
Scenario:
Lets say im Listing a home for $450,000
I owe $250,000
If I want to seller finance this property, does the buyer need to cover the equity of the property?
Can I decide the interest rate on the mortgage?
Can I create a 30 year term?
I hear there’s a balloon payment involved as well in 5 years?
Honestly it’s so confusing.
Thanks in advance for your help.
In: Other
If you owned your home outright you’d have a lot more options.
But you don’t. You have a mortgage. That severely limits your options in terms of seller financing, if your lender will even allow it at all.
You could explore, for example, the buyer taking over your existing mortgage somehow.
But there’s no way you could offer a buyer any loan you want while simultaneously paying your own mortgage. Your own mortgage is contingent on you continuing to own the property – you couldn’t sell it to someone else while continuing to pay the mortgage.
Is there any possibility that what you really want is just to rent out your property to someone else as a tenant? You could do a rent with option to buy.
Latest Answers