Posted by jeff on September 06, 2002 at 19:07:42:
some lenders wont allow gifts, borrowed funds, second mortgages, etc. for down payments. but some do. most investor oriented lenders will allow it, its just part of what we do. some lenders will also buy this second mortgage at the closing table, at a discount of course.
Seller holding a second??? - Posted by Corey ND
Posted by Corey ND on September 06, 2002 at 18:27:59:
Wondering how investors buy properties where the seller of the property carries back a second mortgage for the 10%-20% downpayment? It seems to me that most every mortgage I have obtained they will not let you have any seconds on the house. They usually make you sign a document stating that this is the only agreement on the property and that there are no other agreements with the seller of the property. SO what do you do in this case? Give the seller a second on another property you own? Presign the papers for a second and hold it in escrow (but wouldn’t this be illegal as it is another agreement that you would need to disclose to the mortgage company?)
Thank you for any advice!
Corey