Seller Carry Paper Financing

[Nicholas Bec]

I have a property I am interested in buying in New York. The owner is a motivated seller. Asking price ($330k) is currently slightly under market value and owner is willing to carry. The owner has an outstanding mortgage of $130k on the property that they would like to payoff in order to carry paper on the balance, in this case $200k. What would be a good way to structure a deal? It is a property that I would like to move into and can qualify for a $130k loan (30yr fixed at market rates; would be a traditional mortgage with a puny 37.9% LTV) to pay off the existing note but would need about five years to be able to then refinance the house and buy out the remaining $200k equity stake. Seller is creative and flexible but wants to wipe the $130k existing loan to carry and ideally I would like zero or near-zero interest on the remaining $200k equity stake.