CalculateRealEstateROI

Financing

Subject-To Acquisition

Taking title subject to existing financing — preserving below-market mortgage rates.

Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Core concepts

Preserve cheap debt

Inherit seller’s 3% mortgage at scale.

Due-on-sale risk

Lender can call loan if discovered.

Examples

  • Took title subject-to $250k mortgage at 3.25% from 2021.

Practical applications

  • Below-market rate preservation.
  • Distressed seller workouts.

Common mistakes

  • Triggering due-on-sale via insurance changes.
  • No exit if loan is called.