If you're wondering whether you can sell a house with a mortgage, the answer is yes. You have several options for how to do it. In fact, most home sellers still have a mortgage when they sell. According to the National Association of Realtors, approximately 60-70% of home sellers use their sale proceeds to pay off an existing mortgage.
The process and outcome depend largely on three factors:
This guide walks you through your options and helps you determine the best path forward.
Yes, absolutely. Having a mortgage doesn't prevent you from selling, it just means the remaining loan balance must be addressed as part of the sale transaction.
Here's what typically happens:
When you sell your home, the closing process includes:
Example:
As long as your sale price exceeds what you owe (plus closing costs), you can sell and walk away with money in your pocket.
This is the most common approach, used by the majority of home sellers.
How it works:
Best for:
Pros:
Cons:
Available for FHA, VA, and USDA loans, this option has become extremely valuable in 2026's high-rate market.
How it works:
Best for:
Pros:
Cons:
*Assumption Timeline & Financing Note: While traditional assumptions take 60-90+ days when working directly with lenders, platforms that specialize in assumable mortgages (like Roam) have streamlined the process significantly. With dedicated assumption teams, lender relationships, and pre-qualified buyer networks, closings can happen in as little as 45 days, with qualified offers typically arriving within 30 days of listing. Additionally, Roam buyers can access secondary financing options with down payments as low as 5%, making assumptions accessible to a much broader pool of qualified buyers.
Why this matters in 2026:
With current mortgage rates above 6% (see this week's rates here), if you locked in a rate between 2.5-4% during 2020-2022, your mortgage is exceptionally valuable.
Example comparison:
Buyers are often willing to pay a premium for your home to access these savings. [Learn how to maximize your sale price with our complete guide to selling with an assumable mortgage →]
This option applies only when you're "underwater” (owing more than your home is currently worth).
How it works:
Best for:
Pros:
Cons:
Important note: Short sales are relatively rare in 2026's market. Most homeowners who purchased before 2022 have substantial equity due to home price appreciation over the past several years.
Before deciding which selling option to pursue, calculate your equity:
Home Equity = Current Home Value - Remaining Mortgage Balance
Example calculations:
Scenario A: Strong Equity Position
Scenario B: Moderate Equity Position
Scenario C: Underwater Position
How to determine your current home value:
If you have an FHA, VA, or USDA loan, you need to understand the significant advantage you may be sitting on. [Read our comprehensive assumable mortgage seller guide for detailed strategies and step-by-step instructions →]
Assumable by law:
Not assumable:
The premium depends on several factors:
1. Rate Differential
The bigger the gap between your rate and current rates, the more valuable your loan.
2. Remaining Balance
A larger remaining balance means more monthly savings for the buyer, which justifies a higher premium.
3. Remaining Term
More years remaining means more total savings. A loan with 27 years left is worth more than one with 10 years remaining.
4. The Equity Gap
The difference between your sale price and remaining loan balance affects how many buyers can qualify*:
*Platforms like Roam offer secondary financing that allows qualified buyers to cover the equity gap with as little as 5% down. This has transformed the assumable mortgage market by making these sales accessible to a much broader range of qualified buyers.
Traditional assumptions typically take many months due to:
Roam streamlines this dramatically due to:
The typical Roam Process:
Week 1-3: List
Your Roam Agent lists your home and the assumable loan attracts 5X more offers than traditional listings
Week 3-4: Contract
You accept an offer within 30 days and your Roam Agent drafts all sale and loan paperwork
Week 4-10: Close
Within 45 days the sale is finalized, you are paid out, and your loan is transferred to the buyer.
Buyers must meet two requirements:
1. Lender Qualification
2. Funds for Equity Gap + Closing
How buyers cover the equity gap:
Option A: Cash (most common)
Option B: Second Mortgage
Option C: Seller Financing
Option D: Roam's Secondary Financing
If you have a low-rate FHA, VA, or USDA loan, the assumable mortgage route is almost always worth pursuing. You could add tens of thousands of dollars to your proceeds and sell faster than you would otherwise.
For those with conventional loans, the traditional sale path is straightforward.
Contact your loan servicer and request:
Standard valuation methods include:
However, if you have a home with an assumable mortgage, standard valuation methods miss an important factor: your low-rate loan. Share your address with Roam to estimate the premium your assumable loan could add to your sale price.
Simple formula:
Estimated Sale Price
– Remaining Mortgage Balance
– Agent Commissions (5-6%)
– Closing Costs (2-3%)
= Your Net Proceeds
Example:
$450,000 (Estimated Sale Price)
– $320,000 (Remaining Mortgage Balance)
– $30,000 (Agent Commissions + Closing Costs)
= $100,000 (Your Net Proceeds)
Ask yourself:
If you have an assumable low-rate FHA, VA, or USDA loan:
Consider using an agent or platform that specializes exclusively in assumable mortgages. Most traditional real estate agents have never completed an assumption transaction and don't know how to properly value or market your low-rate loan. This is why many sellers with valuable assumable mortgages leave tens of thousands of dollars on the table.
Platforms like Roam solve this by:
If you have a conventional loan:
Selling a house with a mortgage is not only possible—it's normal. Most home sellers still have a mortgage when they sell.
Your decision is straightforward:
The bottom line for 2026: If you locked in a low rate during 2020-2022 with an FHA, VA, or USDA loan, you're sitting on significant value. With the right expertise (like Roam's specialized platform), you can capture that value by getting over 5% more for your home in as little as 30 days.
Can I sell my house if I still owe money on it?
Yes, absolutely. This is normal: 60-70% of home sellers still have a mortgage. At closing, your loan is paid off from the sale proceeds, and you receive the difference. The only exception is if you owe more than your home is worth (underwater), in which case you'd need to bring cash to closing or pursue a short sale.
How do I know if my mortgage is assumable?
Check your loan type: FHA, VA, and USDA loans are assumable by law. Conventional loans typically are not.
You can verify by:
*Note for VA loan sellers: [Understand how assumptions affect your VA entitlement and how to protect your benefits →]
How long does it take to sell a house with a mortgage?
Traditional sales typically close in 30-45 days. If you have an assumable FHA, VA, or USDA loan and choose to market it, the process traditionally takes several months when working directly with lenders. However, platforms specializing in assumptions (like Roam) can close in just 45 days—the same as a traditional sale.
How much will I make selling my house with a mortgage?
Your net proceeds = Sale price - Remaining mortgage balance - Closing costs (typically 6-8%).
For example, if you sell for $450,000, owe $320,000, and pay $30,000 in costs, you'd net $100,000. If you have an assumable FHA, VA, or USDA loan, you could get over 5% more for selling your home with your low rate loan.
If you have an FHA, VA, or USDA loan your assumable mortgage could add significant value to your sale price.
Roam specializes in assumable mortgage sales:
All at no cost to you. Get your free valuation at withroam.com/sellers
About This Guide
This guide provides general information about selling homes with mortgages as of January 2026. Specific processes, timelines, and options may vary based on your lender, location, and individual circumstances. Consult with qualified real estate and financial professionals for personalized advice.
Last Updated: January 29, 2026
Sources:
About Roam: Roam is the leading platform for assumable mortgage listings, helping buyers find homes with below-market interest rates and navigate the mortgage assumption process from start to finish, and sellers expertly market their low-rate loan to sell faster and for more. Our mission is to make homeownership more affordable by unlocking opportunities that already exist in the market.