Owner financing scenerio. - Posted by Todd (MN)

Posted by dewCO on December 30, 2000 at 19:57:06:

Not sure what your whole scenario is basically OK. But the hard money lender will probably want to keep you at 60%-65% LTV, and won’t care if you put a second on it most likely. When you refinance later to pay off the “high interest loan rate” if you are referring just to the 1st with hard money lender, you’ll need the permission of the 2nd (owner carry) to do so (the owner carry loan might also need to be at a “high” interest rate!) and the 2nd will have to do a subordination to allow the refi on the first to come back in in the first position if you aren’t doing the refi on both of them.

Make sure you know that you/the property can qualify for the refi if you want to do it sooner rather than later. Will deend on your credit, the LTV of the refi and whether or not it is owner occupied, and the debt ratio. You don’t want any nasty surprises. It’s best if you can live with your original scenario for a year or so, if you would need to.

Owner financing scenerio. - Posted by Todd (MN)

Posted by Todd (MN) on December 30, 2000 at 13:47:33:

My idea is to get a hard money loan for 65%-75% and then give a note to the seller for the remaining balance. Will the lender allow me to do this? If so do I need to record the seller note? The next idea is to then refinance and pay off the high interest rate loan. Opinions and comments please.