Subject-To Deal Calculator
Subject-To (Sub-To) deals let investors take ownership while leaving the seller's existing mortgage in place. The buyer makes payments on the existing loan and acquires the equity differential. Higher risk but enables zero-down purchases.
How Subject-To Works
Buyer takes title via deed transfer while seller's mortgage stays in seller's name. Buyer pays seller monthly (or directly to lender via escrow) the existing P&I plus tax/insurance. Buyer becomes the rental owner with equity exposure but no new financing — useful when buyer cannot qualify for traditional loan or wants to assume low-rate mortgage.
Due-On-Sale Clause Risk
Almost every U.S. mortgage has a due-on-sale clause: lender may demand full payoff if title transfers. In practice lenders rarely call performing loans (~1% per year), but the risk is real. Standard mitigations: title held in seller's revocable trust with buyer as beneficiary, insurance kept in seller's name with buyer as additional insured, communication kept minimal with lender.
When Sub-To Beats Traditional Purchase
When seller's existing rate is sub-4% (massive savings vs current 7%+ rates), when buyer has insufficient credit/income for new loan, when seller is in distress and motivated, or when property has thin equity but strong cashflow. Texas, Florida, and Tennessee have the most active Sub-To investor communities.
Source: BiggerPockets Sub-To Investing Guide 2025, Pace Morby SubTo Community. Last updated: May 2026.