Creative Financing Options With An Existing Mortgage

[Tyler Deuel]

I am looking to do a deal on a home worth about $300,000 with an $80,000 mortgage remaining. Is there a way to combine sub-to and seller financing to make this deal work for the seller (assuming the numbers make profitable for me to rent the property)? I would like to remove the burden of the mortgage payment while also giving them some profit in the short term and offer a balloon payment in year 10. They will not accept the deal if it is just a subject-to offer in the amount to cover their mortgage payment. 

[Patrick Fraire]

I am currently in escrow on a triplex using an fha mortgage + a seller carry back (second lien position)

Due to strict fha guidelines on 3-4 unit properties...I could only qualify for 517k with 5% down. The seller wanted 549k. We negotiated for about a month on and off and agreed to do a 517k loan and a carry back of 36k and the seller will cover closing costs.

My lender is a wholesale lender and is pretty savvy with creative financing. We are 11 days into escrow now and no red flags so far.