Posted by Ernest Tew on July 12, 2003 at 09:43:19:
Philip, many banks will ask the borrower where they will get the down payment. If the down payment is borrowed, they may not make the loan.
However, if she were to “sell” her mobile home to your parents for the $2,000 that is needed, that should work fine.
Your parents could then sell the home to you for $2,000, payable over an agreed period of time.
The girl could then give you a $2,000 note for an option to buy the mobile home for some higher price. Of course, the note would never be exercised and the option would soon expire.
will banks ever allow it a tiny % of the down to be borrowed?
I have a young girl who wanted to sell me a mobile home too get the 2k she needed to complete her down payment for a built home.
The mobile I would only take as a freebie because it is a dump.
If the girls parents own something that could be used as collateral, and they will co-sign with her, could an investor make her a 2k loan?
Or would the bank be afraid of that?
My parents don’t mind straight loans (no spread). Just so they can get small notes. They would probably spread this out long enough to make the girls payments pretty small.
Like a 5-7 year note. My parents want the note to be long and locked in…they are happy with the straight 12% or so that they would charge.
Will the bank let it happen? If it is stated up front?
Philip