If you’re thinking about selling your home and want to explore creative options, owner financing can be an appealing route. It allows you, the seller, to act as the lender and offer flexible terms to potential buyers—often attracting a wider range of interest. But if you still have an existing mortgage, you might be wondering: “Can I still do owner financing?” This is a common concern for homeowners in Georgia, and the answer is: yes, it’s possible—but with conditions. While traditional owner financing usually works best with properties that are mortgage-free, there are alternative methods such as wraparound mortgages or “subject-to” deals that can work even if you still owe on the home. However, it’s crucial to understand how your current mortgage terms—especially any due-on-sale clause—could affect your ability to move forward.
Navigating this process requires careful planning and a clear understanding of both legal and financial implications. While creative financing options can help you sell faster and even earn more over time, doing so without the right structure could lead to complications with your lender. That’s why it’s important to consult with a real estate professional or attorney familiar with seller financing laws in Georgia. With the right approach, offering owner financing—even with an existing mortgage—can be a powerful tool to help you sell your home on your terms.
You have options
When considering selling your home, you have multiple paths to choose from. You can work with a real estate agent, market the property yourself, or sell directly to a buyer. However, many savvy homeowners are now exploring a powerful alternative known as “owner financing” or “seller financing” – a method that allows you to sell your home while receiving consistent payments that gradually pay off the property:
- The buyer provides you with an initial down payment
- You receive predictable monthly payments directly from the buyer
- Once the full agreed-upon price is paid, property ownership transfers completely to the buyer
Property owners appreciate this approach because it expands their selling options and connects them with a wider pool of potential buyers – including those who may not qualify for conventional mortgage financing. Homebuyers value this opportunity because it provides them with more housing choices without necessarily affecting their credit scores during the purchasing process.
When you own your home free and clear, seller financing is a straightforward option. But what about properties with existing loans? You might be asking yourself, “Can I offer owner financing in Georgia while still having a mortgage on the property?”
The short answer is: it’s complicated.
Seller financing with a mortgage
Certain states allow for the creation of a financing arrangement known as a “wraparound mortgage,” where you provide mortgage financing to a buyer (typically at a higher interest rate) while continuing to make payments on your existing mortgage. It’s important to note that this strategy isn’t permitted in all states or circumstances, and several critical provisions exist that require your careful consideration before proceeding.
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…
Another flexible option worth considering is rent-to-own, which shares certain features with traditional buying (such as regular payments leading to ownership) while offering key differences (typically no initial down-payment, though buyers must qualify for bank financing at the conclusion of the agreed rental period).
Considering owner financing but still have a mortgage on your property? There’s a better solution: Reach out to us today to discuss your unique situation. As seasoned real estate professionals, we have access to several alternative approaches you may not be familiar with. We’ll guide you through all available options and either assist you directly or connect you with the right specialist who can help address your specific needs.
We’re actively buying houses in a wide range of cities, including Macon, Lizella, Warner Robins, Bonaire, Jeffersonville, Kathleen, Centerville, Byron, Fort Valley, Gray, Milledgeville, Forsyth, Juliette, Bolingbroke, Roberta, Perry, Dry Branch, Dublin, Thomaston, Hawkinsville, Eatonton, Sandersville, Eastman, Cochran, Sparta, Gordon, and Knoxville.
Get in touch with us today by clicking here to fill out the form or by calling us at (478) 739-3968.
