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93. Can I Do Owner Financing In Madisonville KY If I Have A Mortgage On The Property?

cash for homes in Madisonville KY

We buy houses in Madisonville Kentucky. We are legitimate homebuyers in Madisonville and when you decide you’re ready to sell your property in Kentucky you start exploring all possible options. Perhaps 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 Madisonville KY 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…

Can I Do Owner Financing In Madisonville KY If I Have A Mortgage On The Property?

You have options in Kentucky

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:

sell my home in Madisonville KY
  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. House 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 Madisonville KY if I have a mortgage on the property?

The short answer is: it’s complicated.

Seller financing with a mortgage in Madisonville

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.

Madisonville KY house buyers

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).

Sell My House in Madisonville KY

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. We are Kentucky home buyers and we offer cash for houses in Madisonville in any situation. As experts in buying and selling real estate, we are aware of a number of options that you might not know about. If you have any questions whatsoever about to sell your house in KY and the surrounding areas, don’t hesitate to reach out to our team! We can walk you through those options and help you out ourselves or we can connect you with someone who can help you.

Get in touch with us today by clicking here to fill out the form or by calling us at (502) 200 - 1800.

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