Finance for 60%, Owner carry 40% ?? - Posted by Daniel Lewis

Posted by Robert (NC) on February 06, 2002 at 15:12:26:

Depends on the bank. A local bank I’m working with is doing an Inhouse mortgage for me on a small investment property. The Loan officer told me the other day that THEY didn’t care where I got the down payment, they are just looking at my financial statement and my total assets. I"m getting an 85% loan from them (in house, no PMI), and putting 15% down. I can either do 15% cash out of pocket or get the seller to carry back a 2nd for the 15%. In this case the seller needs all cash and can’t carry the 2nd, however, the LOCAL bank is allowing me up to 4 investment properties with this package. So my next deal will be NO money out of my pocket… I stress LOCAL banks, becuase I don’t know of a national bank that would do something like this (I’m not saying they won’t, just that they turned ME down when I proposed this type of deal)…

Happy investing…


Finance for 60%, Owner carry 40% ?? - Posted by Daniel Lewis

Posted by Daniel Lewis on February 06, 2002 at 15:00:07:

Hi all!

If I have a “big money cash close” deal, where the owner accepts 60% at closing (from my bank financing),and carries 40% as a second mortgage, placing a second lien against the property, will the bank decide to make trouble?

During the application process, if I ask the bank for 60%, their money is well secured against the property, but will they ask why I only need 60%? Will they need proof of “payment” to the seller? Will the bank ever know a second lien for the 40% will be added against the property?

I searched the archives for this, and couldn’t find much to help…

Appreciation to all!

Daniel Lewis

Re: Finance for 60%, Owner carry 40% ?? - Posted by Nate(DC)

Posted by Nate(DC) on February 06, 2002 at 18:14:19:

If you don’t tell them, it’s fraud.