Hi
It is not a matter of whether the Lender will do or not do this; it is in the structuring of the deal that determines whether it works or not. John I will email you two ways of structuring this in a way to ensure funding.
If a seller is willing to take back 25%, will mortgage companies finance 80% and allow me (the buyer) to take 5% cash back at the closing table? Seems unlikely but I remember reading this somewhere? Does anyone have experience doing this?
When dealing with mortgages or conventional financing the lenders usually require 80% combined LTV. You have to have cash or something of value to add. Is this your primary residence? Try a hard money lender at 65% LTV and have the seller finance 45% if there is room. You can then refi after the mortgage is seasoned. It will cost alot in closing $. If sombody knows a lender that will do this like you want, I would like to know as well.