Posted by MJOHNSON on October 01, 2003 at 17:53:53:
The lenders I use will not only look at the LTV, but also the CLTV, combined loan to value. The owner will have to assign an interest rate and amortization term for the 20% he will be holding. This will result in a payment for the 2nd mortgage which will be included when determining your debt to income ratio. also, they will require the 80% financing be in the first lein position.