Posted by phil fernandez on November 28, 2000 at 13:38:38:
A 2nd mortgage is often used to facilitate a nothing down transaction. Example, you’re buying a property for $100,000, you secure an $80,000 1st mortgage with the bank and the seller takes back paper in the form of a 2nd mortgage of $20,000.
While it is sometimes possible to get 2nd mortgages through banks, normally you would create the 2nd with the seller of the property. When dealing with seller financing, there should be no points or other junk fees involved, which is a nice plus.