Posted by Rich-CA on August 12, 2007 at 21:13:51:
Why don’t you put the question to some actual lenders?
lending money with a balloon note - Posted by Chris
Posted by Chris on August 12, 2007 at 07:20:01:
will a lender loan money on a property with a 7 year balloon note attached. 500,000.00 property, I would like to get a construction perm to cover 250,00.00 toward the property, and 150,000.00 toward construction of the house, and pay the remaining 250,000.00 to the owner of the land in 7 years. Is this something that a lender would allow.
Re: lending money with a balloon note - Posted by Matthew
Posted by Matthew on August 13, 2007 at 09:21:32:
There is only 1 lender that will allow the seller to remain not paid off duriing the construction, the lot has to be paid off on the permanent loan.The issue is fnmae and the lenders will be in first poisition with no outstanding balances on the land.all the other standard construction-perm investors /lenders will pay off the lot at the construction closing.