Financing From 2 Sources

Is there a way I can get 90% financing from 1 source (say a mortgage company) and get the other 10% from another source (say another mortgage company or seller) When the financing happens do both lenders have to know about each other?

Comments(5)

  • bjsmooths21st October, 2003

    ddemott,

    This will probably not work. Before your 90 LTV loan closes, the lender will want to make sure that your portion (whether 5% or 10%) is in your bank.

    There are lenders though who will do a first at 80% LTV and a second at 20% LTV. These type's of loan are pretty common.

    Ask your friendly Loan Officer,

    Beau

  • ddemott21st October, 2003

    Does the 20 need to be from the same lender?
    [addsig]

  • bjsmooths21st October, 2003

    The second will come from the same lender. It's called an 80/20 loan.

    Pretty standard stuff

    Beau

  • Pdinvestments21st October, 2003

    Get a lender who will post 90%, then make a deal with the property seller to post a 2nd on the property for the other 10%, for a certain percent and time for repayment.

  • rajwarrior21st October, 2003

    Yes, you can fund from to different sources, and yes, if they are lenders, you have to disclose to both of them what you are doing.

    In practically all cases, the primary lender will want to know how you intend to pay your downpayment. Some will allow another loan (100%CLTV) while others will not. You'll just need to shop around.
    Mortgage brokers would be the best place to look but don't depend on just one's answer because like any business, many aren't that good at their job.

    Common example of 2 funding source 100% loan. 90% 1st mortgage, 10% DP thru an equity line check VOILA 100% financing.

    Roger

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