Can I loan him the down payment or closing costs? - Posted by Newbie

Posted by Newbie on January 26, 2001 at 07:31:47:

NT

Can I loan him the down payment or closing costs? - Posted by Newbie

Posted by Newbie on January 24, 2001 at 10:53:34:

Hello,

I have a buyer for a property who can qualify for a new loan monthly payment-wise, but he only has enough cash for either the closing costs or the down payment, not both. I have enough equity in the property to finance him the down payment(or closing costs) without coming out of my pocket, but I know next to zip about owner financing, and I’m not even sure this would be legal. I’m also fine with holding onto the second for a few years - don’t need to get the cash up front. We would be honest with the loan officer about the second loan, of course. Can anyone point me in a direction where I can learn more about seller carried seconds, or offer any knowledge or advice??

Thanks so much,
Newbie

Re: Sometimes you can, and sometimes you can’t… - Posted by Ed Garcia

Posted by Ed Garcia on January 24, 2001 at 22:43:58:

It would depend on which lender the buyer uses. Some lenders allow the seller to pay closing cost and have a seller carry-back, and other don’t. First Franklin does 100% financing and allows the seller to pay 6% of the buyers closing cost. Check with the lenders policy, that you’re buyer uses.

Ed Garcia

Thanks Ed - and another question - Posted by Newbie

Posted by Newbie on January 25, 2001 at 08:49:48:

Thank you Ed for the info.

Next question is, can I offer owner financing even though I’ve only owned the property for a very short time? Will there be a seasoning issue when I talk with the buyer’s lender? Perhaps if this presents a problem, there is a way to secure the loan with other collateral. BTW & FFR, do you do loans in Maryland?

Thanks,
Newbie

Re: Thanks Ed - and another question - Posted by Ed Garcia

Posted by Ed Garcia on January 25, 2001 at 10:30:10:

Newbie,

It would depend on which lender you use, and yes I can make loans in Maryland.

Ed Garcia