Creative financing suggestions

[Enrique Montalvo Jr]

My name is Enrique Montalvo, but everyone calls me Rick. Can a seller offer owner financing if they have a mortgage?

I am a Marine veteran. My wife planned to use a USDA loan to buy a home in her name. The house we want is found and now under contract in Oak Harbor, Ohio. This is a nice home that our family of 7 children would live in because we currently rent.

I have a veteran friend that served in the military with me. Their marriage is ending poorly and they agree to sell me their home in Castalia, Ohio for what is owed and not for profit because they don't want money to split between them. (It's an odd situation, and they strongly dislike each other.)

I agreed to the sale of the Castalia home, but haven't signed the contract yet. The Oak Harbor house we plan to live in is undercontract however. My wife was recently denied the USDA loan because of a medical bill still standing.

My altered plan is to use the VA loan to buy the Oak Harbor home. Is it possible to use seller finance agreement to buy the Castalia home until I can later get a loan to buy this house also? I plan to use the Castalia home as an investment property as it is in a highly desired area to live because of great schools with no violence.

[Remington Lyman]

@Enrique Montalvo Jr I have heard of people assuming other's mortgages but I would reach out to a lawyer to confirm. You will probably want to hire one to draft up a contract for the arrangement anyways.