Owner Financed Sale Question
HI All.
I have put together some flyers that basically say I'm looking for sellers who are willing to finance 75% of the sale of their home. The problem is, I don't have the other 25 percent either. I do have another home with some equity, and very good credit for a personal loan.
If I find an owner willing to finance me 75% of the price, and as the primary mortgage holder, would the seller have a problem with my taking a personal loan/or equity loan on my first house for the remaining 25%. In fact, would they even have to know. I know a bank would never accept this because they would run a credit check and find out I am financing the down payment, but perhaps an owner would not care as much.
Any advice.
Thanks!
I'm a little confused by your post. You made flyers saying you are looking for a seller who will carry 75% of the loan so you can pay 25%, but you don't have the 25%.
What was your intention by making the flyers? Were you going to get the 25% from another buyer that you plan to put into the house?
If you are going to come up with money from your own equity I believe this is just a refi. There's no need to tell the owner of the original house that you are going to refi to get the money if that's what you are asking. Just make sure you know what you're doing. It's a little hard for me to tell by reading that email. Maybe my reading comprehension is in the trash today...I dunno.
Ryan J. Schnabel
Thanks Ryan,
I guess it leads to confusion to say that I was going to be putting 25 percent down when I have no money.
I do have equity in my home and will be getting all (or the lions share) of the money from refinancing.
I am afraid if I go through a bank, I will be above the 30 percent ratio, and they will refuse the mortgage on a new property. That is why I am seeking seller financing.