I see this term a lot owner carry back or owner to carry back a second mortgage will very much like this ex[plained as to how this works and this help close a deal.[ Edited by goodlow on Date 03/19/2005 ]
Owner carry back or seller seconds are where the owner of the property sells it and keeps a 2nd mortgage in an agreed upon amount. This can help reduce your downpayment. Most lenders will loan between 70% to 80% on commercial properties. Some will allow up to 90% CLTV (combined loan to value) if the seller takes back a second mortgage of 10% to 20% of the sales price (some lenders allow the seller to carry 10% with the buyer putting down 10% and the lender giving a 1st mortgage of 80%, while others want the seller to carry back 20% with 10% down from the buyer and the lender giving a 70% 1st mortgage. Hope this helps.
Owner carry back or seller seconds are where the owner of the property sells it and keeps a 2nd mortgage in an agreed upon amount. This can help reduce your downpayment. Most lenders will loan between 70% to 80% on commercial properties. Some will allow up to 90% CLTV (combined loan to value) if the seller takes back a second mortgage of 10% to 20% of the sales price (some lenders allow the seller to carry 10% with the buyer putting down 10% and the lender giving a 1st mortgage of 80%, while others want the seller to carry back 20% with 10% down from the buyer and the lender giving a 70% 1st mortgage. Hope this helps.