OWNER FINANCE
I'm looking to buy a property using some convertional finance. I'll be getting a conventional 1st and having the owner hold back a second. Any suggestions or tips on terms of the second. Do i have to tell the mort company of the hold back?
Thanks in advance for your help.
Also, once I own the prop should I try to refi and get rid of the owner finance?
Any suggestions or tips on terms of the second?
You'll have to get at least enough of a 1st mortgage to satisfy the seller's loan. As far as terms for the 2nd, it's whatever you can agree on. Remember to start low and work up.
Do i have to tell the mort company of the hold back?
Disclose everything to your loan officer, otherwise, you're committing loan fraud. Besides, the lender is going to ask about the downpayment anyway.
once I own the prop should I try to refi and get rid of the owner finance?
It depends. Is the cost of the 1st and 2nd mortgages cheaper than a new refi? Is the appraisal high enough so that you can cashout on the refi (tax free money)? And finally, do you plan to keep this property for at least 2 years?
Hope this helps.
Roger