Help With Seller Financing
I want to buy a 3 family for $350,000 that needs approx. $20,000.00 of rehab. The seller will hold $100,000 for 5 years. I want to get an 80% loan for $280,000 and use the $30,000 for closing costs and rehab. A true no-money-down deal.
How do I approach the lender? Am I honest? Do I not let them know about the 2nd mortgage? Do I have to do an unrecorded 2nd Mortgage?
Please help and thank you in advance.
Ferris83
In all my dealings (7) I have had to show a bank where I was coming up with the 20% down. If you don't have it, ask the seller or an Angel (private investor) for a side note. It sounds like if you have a flexible seller, you may get this deal done. I started out with "no money down" deals and then re-financed some of the deals to take cash out. Now, if I can't get a zero down deal, I just pay cash and then re-finance 30 days after title transfers. Oh ya, I only buy property at 60 - 70% of market value and less if I have to re-hab. Good luck