How to Sell a Florida Home When You Still Have a Mortgage

So, you're thinking about selling your Florida home, but there's a catch—you still have a mortgage on it. Good news: you're not alone, and it’s absolutely possible. In fact, many homeowners sell with a mortgage still in play. The key is understanding how it works so you're not blindsided by payoff demands, closing costs, or timing traps.



This guide breaks it all down—from navigating your loan balance to working with a cash buyer like 904 Home Buyer, who can make the process a whole lot smoother.

Can You Sell a House With a Mortgage?

Short answer: yes. Your mortgage doesn't have to be paid off before listing your home. The remaining balance just gets settled at closing using the proceeds from the sale. The title company ensures your lender gets paid, and you keep what’s left over.

But it’s not as cut-and-dry as slapping a “For Sale” sign on the lawn and walking away. You’ll need to factor in:

• Your loan balance
  
• Market value of your home
  
• Closing costs
  
• Potential repairs or buyer requests
  
• Timing logistics (especially if you’re buying another home)
  
  

Let’s tackle these one by one.

Step 1: Know What You Owe

Before anything else, contact your mortgage lender for a payoff quote. This isn’t just your loan balance—it includes daily interest and any fees that may apply if you’re selling before a certain date.

Your mortgage statement gives you a ballpark, but the payoff quote is what matters. You’ll use this to estimate how much equity you have (or don’t have) in your home.



Example:
If your home could sell for $350,000, and your mortgage payoff is $280,000, you’re sitting on about $70,000 in equity—minus closing costs and fees.

Step 2: Check Your Home’s Market Value

This is where a local real estate expert or home-buying company comes in. You need a realistic sense of what your property would fetch today. Florida’s market can shift fast depending on the neighborhood, season, and buyer demand.

Some sellers are surprised to find their home isn’t worth as much as they thought—or relieved to find it’s worth more.



If you go the traditional route, you may work with a realtor and list on the MLS. If you want to skip the commissions, repairs, and buyer financing delays, a cash buyer like 904 Home Buyer can give you a fair, no-obligation offer fast.

Step 3: Understand the Closing Costs

Selling a house in Florida isn’t free—especially with a mortgage involved. Expect closing costs to run anywhere from 6% to 10% of the sale price, depending on your choices. These can include:

• Real estate agent commissions (typically 5–6%)
• Title insurance and fees
• Documentary stamp tax (a Florida-specific charge)
• HOA or condo fees (if applicable)
• Mortgage payoff and prepayment penalties (if any)
• Prorated property taxes
  
  

It’s important to build this into your net proceeds so you don’t assume you’re walking away with more than you really are.

Step 4: Plan the Timing Right

Timing is everything when you’re juggling a home sale and a mortgage. Here’s why:

• Your mortgage continues to accrue interest until it's paid.
  
• If you’re buying another home, you’ll need to line up financing (or make the sale contingent).
  
• A delayed buyer could throw off your plans and leave you stuck paying two mortgages.
  
  

Working with a cash buyer simplifies this. There’s no lender waiting on underwriting. No need for buyer financing to fall through at the last minute. And closings can often happen in as little as 7–14 days.

Step 5: Consider Repairs or As-Is Sale

If your home isn’t in perfect shape, a traditional buyer may ask for repairs after an inspection. That can add unexpected costs or delays.



With 904 Home Buyer, you can sell as-is—meaning no repairs, no cleaning, no staging. You skip the stress and the extra spending.

How Mortgage Payoff Works at Closing

Here’s how it goes down at the closing table:

1. The title company pulls your payoff quote from the lender.
   
2. The proceeds from the sale are used to pay off your mortgage.
   
3. Any leftover cash—after fees and taxes—goes to you.
   
   

If your mortgage balance is higher than your sale price, you’ll need to bring money to closing to cover the difference. This is called being “underwater.”



In some cases, if you’re struggling financially, you might explore a short sale, but that requires lender approval and is more complex.

Why a Cash Buyer Simplifies Everything

If dealing with showings, agent commissions, repair requests, and waiting for buyer financing sounds like a headache, a cash buyer might be your best bet.

Here’s what 904 Home Buyer offers:

• Fast closing (as little as 7 days)
  
• No fees or commissions
  
• No repairs or cleaning
  
• Certainty and peace of mind
  
  

Plus, we handle all the paperwork and work directly with your lender to make sure the mortgage is paid off correctly.

Real-World Example: Maria’s Smooth Exit

Maria owned a home in Jacksonville and still had $195,000 left on her mortgage. She was relocating to Tampa and didn’t have time for a long sales process. She contacted 904 Home Buyer for a quote.



We reviewed her home, gave her a cash offer of $270,000, and closed in 10 days. After paying off her mortgage and closing costs, she walked away with nearly $70,000—without ever lifting a paintbrush or listing her home.

Final Thoughts: Know Before You List

Selling a Florida home with a mortgage isn’t complicated, but it does require planning. Know your numbers, be realistic about costs, and explore options that reduce stress.



If speed, convenience, and skipping the red tape matter most, a direct cash sale might be your easiest route. 904 Home Buyer is here to help make that happen—with no pressure and no surprises.