Lending with no borrower money - Would you do this deal

[Sushil Sureka]

I wanted to get your opinion on a financing situation where borrower/buyer is looking to finance at 65% LTV - value is under 300K.

The seller is willing to finance/note for 40% of the money at 2nd lien position. We would fund 60% of the transaction price + 5% additional money allocated towards improvement. We would get first lien position.

It is a 5 year+ loan. The question is with borrower no money down, would you do this deal.