Mortgage and seller financing?

[Gavin Jex]

Hi, my grandparents want to sell me there home Michigan with a $70,000.00 HEL currently on the property. They would like me to finance the $70,000.00 into a conventional mortgage and also have them as a lien holder with a promissory note of $100,000.00 with $300.00 monthly payments with 0% interest until maturity. I don’t know if this is possible In the state of Michigan. Any guidance would be appreciated, the house is worth between $200,000 & $225,000 currently on the open market.

[Chris Seveney]

@Gavin Jex

So you want a bank loan and then seller finance as well

A bank would not be in second position so they as the owner / lender would be in second.

Also 0% they would still be responsible for taxes on that at AFR so if your payment is $300/mo the loan would go off federal rates so they would essentially have to claim around $5k in interest income which would be ordinary income so they may end up paying all of your payment in taxes… just fyi if they did speak with someone on this

Sounds like a steal if deal for you