Using seller financing as down payment

[Michael West]

I'm discussing buying a package deal from a seller who is open to the concept of seller financing part of the deal. Neither of us have a ton of experience with this and are looking for a bit of advice. The total purchase price is $240k and, although I can bring the down payment, I would rather keep my capital available for the necessary repairs. The seller is willing to fund part of, and possibly the entire down payment because they like the idea of receiving the majority of the cash up front, but also continuing some passive cash flow for a time to offset the taxes.

Can someone explain to me with a bit of detail, how this would be structured and presented to the lender?

Would cash actually have to exchange hands first, like a private loan, or could this all be worked out at closing with the title company?