Seller financing the downpayment on a normal RE loan?

[Chad Maghielse]

Hi everyone, 

Though it's rare, I occasionally see rental properties for sale where the seller is offering to do partial seller financing.  I had the idea of trying to get a normal 80% loan with a lender but pairing that seller financing for the 20% downpayment.  Unfortunately, the lenders I'm already familiar with have shot down this idea because there cannot be any 2nd positions on their loans.  

Is this possible to do or will this always be shot down across the board?  If possible, this could be a great way to do no money down deals!  

Thanks everyone!

- Chad 

[Mark Pixley]

Chad  Jeff, 

Actually, I have done this 3 times with only a note between the ourselves and the 20% down owner or private investor.  The note was done by an attorney and was very legitimate.  If I am not mistaken, when closing the title agent can hold the filing on the 2nd for a couple days and it works out, just tell the closing agent to make sure the 2nd comes in after the first.