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

import · January 24, 2001, 6:41am

Posted by Judith on April 11, 2001 at 01:50:49:

What are the possible adverse consequences of “silent seconds”? Could you spell it out? Also the silent second will be recorded, so it’s not strictly sneaky.

import · January 24, 2001, 6:41am

Posted by Newbie on January 24, 2001 at 07:41:35:

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 closing costs, and not for the down. I have enough equity in the property to finance him the down payment 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

import · February 12, 2001, 9:01am

Re: Can I loan him the down payment? - Posted by Robert

Posted by Robert on February 12, 2001 at 10:01:54:

Take back a second. Amortize it intrest only becoming due in a year or two. Not dishonest either.

import · January 27, 2001, 7:27pm

Re: Can I loan him the down payment? - Posted by Sean

Posted by Sean on January 27, 2001 at 20:27:33:

It is not likely that any bank would permit that if you’re honest with them. Of course you could always try being dishonest, which creates what is known as a ‘silent second.’ Silent seconds are bad things to have for many reasons. I don’t recommend dishonesty.