Can I Do This? - Posted by Nick

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

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?

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

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%.

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!

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

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

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.