Will selling my home to an investor (we buy homes for cash places) hurt my credit score?

A question by :   I’m not at risk for foreclosure. Need to sell fast.?


Provide a response using the comment section. After review we will update the answers.

Selling your home won’t lower your credit score. If you’re concerned about how selling your home may impact your credit, you should be aware that it might not even make a dent. If your credit history is overall good, it won’t hurt your score, but it could not assist it in the long term. The major drawback is that creditors and lenders won’t be able to evaluate your credit risk because you won’t have a history of ongoing mortgage payments.


Selling your house to anyone would not have any effect on your credit score whatsoever.

Most of these investors offer all cash to the current owner of the house. This is not true in most cases of these investors purchased houses.

You would want to make sure; your current is paid off during the sale and before the closing of the transaction.

Make sure you read the sales contract. Most investor sales contracts would have a clause in the contract that would indicate this sale “Subject to the existing mortgage” This means this investor is going to assume your
existing mortgage and pay you the difference of the sale price in cash. If your sale price is $100,000, and your mortgage loan balance is $65,000, the investor would cash you out with the $35,000. This investor would not bring $100,000 to the closing to pay you the $35,000 and pay off your existing mortgage loan of $65,000.

Your name would still be on the mortgage loan. Since this is a common occurrence done by real estate
investors and is not against the law, both federal nor state. The closing agent would request from your mortgage lender the balance of your mortgage loan. If the balance is as you indicated and no additional funds are required by the investor, the investor would request the deal to be closed.

The closing agent and title company would understand what the investor is doing and close the transaction.

In the rehab and finding another buyer, the investor might miss a few monthly mortgage payments, however, the investor would not allow the house to go into foreclosure. He has too much invested in the house to allow this. These late payments would be recorded on your credit report as the mortgage loan would still be in your name. These late payments would reflect negatively on your credit report.

You would want to make sure your current mortgage is paid off during the sale transaction. Make sure there is sufficient funds provided by the buyer deposited with the closing agent to cover your mortgage loan balance and the cash you were promised.

I use this method at least 2-3 times per month in the purchase of investment properties from individuals.”


“Having a mortgage is one of the few well known positive factors in a credit rating.

Going from having a mortgage to not having a mortgage is likely to cost a small number of points. Probably not enough to matter if applying for most loans.

One offset that would increase your score much more than the small change – If you pay off all of your credit cards with the proceeds that will increase your score plenty.”


“Your credit score are fine, and actually I sell my house to an investor also. I don’t need to pay for a service fee or commission fee. I just get my cash and move on now. They are nice people.”


“Hope you can break even or even make a small profit. If you are upside down on the home it will not sell. These buyers are looking to make big money off your home. Need to sell fast call a realtor broker they may find you an investor fast.”

Big Deal Makers

“Unless you are fully knowledgeable of real estate transactions and able to understand all the intricacies
of an offer to purchase, you can be easily scammed.
A sale of your own property, if not in foreclosure or a short sale, will have no effect on your credit score.
Assuming you have no mortgage or unpaid property taxes.
However, you must hire your own lawyer who will protect YOUR interests.”


“No, but i would recommend listing it with an anglet a t slow price. you will still get better than hose super low investors, and maybe still get an all-cash deal. just list it low. try it for a week and then go the other route if your font get a buyer quickly”


By Alexandre Laurent

Alexandre Laurentl is working in the jewelry and investment gold since 2002. Alexandre graduated from The Normandy School of Business and from the University of Perpignan a Bachelor of economics in 1995.

Leave a Reply

Your email address will not be published. Required fields are marked *