Posted by JohnBoy on May 15, 2000 at 13:05:34:
I understand your point about the second. That’s why I said it would depend on the borrower and amount of the second. If its a low end property 10% of that at the higher rate may not make that much difference if were talking a few thousand. Then also, what about amortizing the second out over a longer term with a balloon to get a higher rate and keep the payment lower for the buyer to keep within the guideline of qualifying income wise?
Also, since the buyer is the one that approached the seller with the idea of doing an 80/10/10, I’m was assuming he probably has already been pre-qualified to get this type of loan. If that was the case wouldn’t the lender already have committed on an interest rate the buyer would be able to get or would they still come back and try to get a higher rate because of what the sellers second is?
By the way, “HAPPY BIRTHDAY”
It’s not every day you get to turn 39!