seller carry back 2nd

[Jodi Rhoades]

We are looking into buying a property where the seller would help us with the downpayment.  In banking terms I think it is known as seller carry back 2nd.  Not all lenders are willing to have the downpayment financed. It is 30 plex  multi family  unit with good cash flow.  Has anyone worked with lenders that are willing to have part of the downpayment financed.

[Connor Dunham]

Hi @Jodi Rhoades.What you're looking for is similar to mezzanine financing. Many commercial lenders do not allow loans secured against the property above 70% LTV. However, mezzanine loans are secured by your equity, not by the property themselves. You would need to get the bank underwriter to sign off on that by supplying them with a disclosure saying that the seller is giving you a loan secured by your equity, which is equal to 15% of the total property value. I'd say that's about the max you could go with loans and not bringing in partners. Best of luck with your deal!