Owner Carryback with Mortgage Financing

[Bryan Wilson]

Hello all,

I've been looking into something I'm trying to figure out for the first time as it pertains to an owner carry back along with a mortgage.  There seems to be a lot of varying opinions and rules surrounding this so I decided I needed to ask.  

Scenario:

I have an off-market deal for a house that is worth approximately $500k. The property is paid off completely, but the owner needs to have enough money down in order to purchase her new home in a different state.  I'm attempting to figure out the best approach to try and receive bank financing along with an owner carry back for the down payment portion since it would be an investment property.  Purchase price would be between $450k to $480k depending on if she rehabs or not.  

I'm open to all feedback as I've never done anything like this before and it seems to be tricky and possibly difficult to achieve.  

My partner and I are not opposed to putting money into the deal ourselves, but the Owner is open to carrying the full 20-25% down payment portion.  Has anyone had any luck with a mortgage/bank company that has been comfortable with this type of setup?  Would a Portfolio Loan work possibly?  

Thanks for the responses everyone.