Can you offer seller financing with an existing mortgage?

First, find out what happens at closing

Ask for a written breakdown of the price, down payment, mortgage payoff, closing costs, and amount you would finance.
If the buyer brings enough cash or approved financing to pay off your loan and other closing obligations, you might finance part of the remaining price.
The proposed lenders and closing professionals must approve the structure where required.

If the existing loan stays in place, there are two payment obligations to account for.
Get a current payoff statement and the loan documents before comparing proposals.
A monthly mortgage statement alone will not explain every transfer restriction.

Read the due-on-sale clause

A due-on-sale clause can allow the lender to demand repayment after a transfer.
Federal law contains exceptions for certain transfers, but an ordinary sale should not be assumed to qualify.
Have your attorney review your loan and ask the lender about consent before committing.

Reference: 12 USC 1701j-3: due-on-sale provisions and exceptions

Understand a proposed wrap mortgage

In a wrap arrangement, the buyer owes a new obligation while an earlier loan remains outstanding.
Texas has specific wrap mortgage rules.
Depending on the transaction, these address disclosures, closing, licensing or registration, and the handling of payments.

Ask who receives the buyer's payment and who pays the original lender.
Request a plan for verifying payments and handling insurance, taxes, missed payments, and a lender demand for payoff.
A servicing company can keep records, but it does not remove the underlying risks.

Reference: Texas Finance Code Chapter 159: wrap mortgage loans

Check the rules before offering terms

Texas licensing exemptions are limited and depend on the facts.
An exemption from a licensing requirement does not mean that every other lending rule disappears.
Have a Texas attorney and an appropriately licensed mortgage professional assess the arrangement before you advertise or negotiate specific financing terms.

Reference: Texas Department of Savings and Mortgage Lending: mortgage origination FAQs

Compare the proposal with paying off the loan

Write down the cash you would receive now, what you would receive later, and which debts would remain in your name.
Ask what happens if the buyer stops paying or cannot refinance when a final payment comes due.

Compare those obligations with a conventional sale that pays off the mortgage.
If you need to end your loan responsibility, obtain the lender's written release or confirmed payoff rather than relying on the buyer's promise.

Checklist before your next conversation

• Obtain the current loan documents and payoff amount.
• Ask how much cash reaches you now and which debt remains.
• Have an independent Texas attorney review transfer restrictions and the proposed structure.
• Identify who monitors taxes, insurance and every loan payment.
• Ask how default, a payoff demand or failed refinancing would be handled.

Estimate your seller net proceeds