Do on Sale Clause?

A due-on-sale clause is a provision in a loan or promissory note that enables lenders to demand that the remaining balance of a mortgage be repaid in full in the event that a property is sold or transferred.

Which type of mortgage loans do not have a due-on-sale clause?

There are some kinds of mortgages where the contract does not have a “due on sale” clause. Those include VA, USDA, and FHA loans. These types of mortgages lack such clauses because they actually can be transferred from one individual to another.

How do you avoid due-on-sale clause?

Transferring a Property Subject to a Due-on-Sale Clause

Perhaps the best way to avoid triggering a due-on-sale clause in a real estate deal is to obtain the lender's consent for a transfer.