Can I Do This? - Posted by Nick


#1

Posted by Redline on March 01, 1999 at 15:18:19:

Aha … I had my mind thinking “multi-family” when I saw your post. Makes sense it only works on SFRs.

Thanks,
RL


#2

Can I Do This? - Posted by Nick

Posted by Nick on February 28, 1999 at 13:58:12:

Hello everyone;

I saw an ad in the paper and a mortgage company will
finance a property with %10 down, so I thought, if I put
down %5 and the seller puts down the other %5 that makes
it a total of %10.

But will the mortgage company allow this?


#3

Re: Can I Do This? - Posted by Darrin

Posted by Darrin on February 28, 1999 at 16:09:13:

Yes. If your credit is good, you can buy with a 100% first mortgage. If you have 5% down, try to get the seller to provide a 2nd mortgage because the rate will be lower. If they won’t, we mortgage brokers have plenty of 90/5/5 programs!

In general, you should have the seller finance as much as possible to lower the interest rate on the 1st mortgage (assuming you have less than perfect credit).

Darrin


#4

Re: Can I Do This? - Posted by JohnBoy

Posted by JohnBoy on February 28, 1999 at 15:25:15:

It depends on the lender. A lot of lenders will allow the seller carry back part of the difference with a second mortgage.

I’m working on a deal right now where my lender will finance 80% on the first and the seller will carry back a second for the full 20% leaving me with having to put 0 down. And this is for a non-owner occ. loan.

If your lender won’t allow it, then find another lender. They’re a lot of different lenders out there that will allow seller carry backs with you putting down 5%.


#5

Re: Can I Do This? - Posted by Judy

Posted by Judy on March 01, 1999 at 12:49:31:

What’s a 90/5/5 mortgage? Also, in what states do you work? If you’re note in NY, NJ or PA, could you give the name of a mortgage company in this area?

Thanks for your help!


#6

JohnBoy … - Posted by Redline

Posted by Redline on March 01, 1999 at 13:33:42:

That’s pretty good. I haven’t heard of lenders around here doing that kind of deal.

Anything special about this property? Any special requirements?

RL


#7

Re: Can I Do This? - Posted by Darrin

Posted by Darrin on March 01, 1999 at 17:04:54:

A 90/5/5 is simply a 1st mortgage of 90% with a down payment of 5% and a seller held 2nd mortgage of 5%.

Sorry, but I’m way down here in Georgia. You can find mortgage companies in your area by going to Yahoo and doing a search using two variables :
The name of your city and the word, mortgage.
i.e. Allentown Mortgage or Mortgage Allentown

Shop around. Fair priced, knowledgable loan officers can be difficult to find.

Good Luck!

Darrin


#8

Re: JohnBoy … - Posted by JohnBoy

Posted by JohnBoy on March 01, 1999 at 14:43:13:

These loans work on SFR’s and decent credit. You just have to find a good mortgage broker that works with numerous lenders or find a mortgage lender that offers these type of loan programs. Buying with putting a 80% first, 15% second seller carry back, with 5% down is easier to find than the 80/20 seller carry back, but they’re out there. You just have to keep shopping until you find them.