We bought our house with an FHA loan, and we're still paying the mortgage. If we decide to move, could we sell it to someone and offer owner financing? Or would we have to pay off our loan first?

The housing market isn't very hot here - typically homes are on the market for 30+ days before they sell, and I don't really want to deal with the hassle of being a landlord. But if it's possible to owner finance that may bring in more potential buyers.

I know that when we were house shopping before, I reached out to one of those, and they required a couple of thousand down - either in cash or goods like ATVs or cars, and then the interest rate they charged was on par with credit cards. I imagined trying something to that effect here, but I'm not sure what kinds of risks are involved there other than someone defaulting on the (mortgage?) and having to... repossess the house or whatever it's called.

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    One of the terms of your mortgage is going to be that you can't sell the house without (more or less) the bank's permission. That will include paying the bank off before you lose title of the house. this is why the money doesn't go from the buyer -> into your hands, the money goes from the buyer's bank to your bank (probably through a lawyer's escrow account). Without this protection, suddenly the bank has no legal way to easily get its value back if you run away without paying the mortgage. Oct 19, 2017 at 17:30

1 Answer 1


You have to pay off the balance on the loan first. Also, FHA loans are not supposed to be used for rental properties. I don't know how you living there for a number of years changes things or how often is that rule enforced but you might need to refinance even if you rent it out.

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