Lenders that allow Seller Finance for Second Position

[Tanner Stallings]

I have a few sellers that are willing to finance / carry back a portion of the property, and I have been trying to find a lender that will allow this to function as a downpayment of sorts (they lend 80% LTV and seller carrys 20% or so).

Is anyone familiar with banks/lenders that will allow this?  I've called a few and no luck so far. 

Been looking mostly in the western US, but have been looking at getting into some markets in the south so any info would be appreciated.

[Madeline Malinovsky]

Hi Tanner - If you're looking into classic conventional financing, you're running into an issue bc of the minimum borrower contribution. For a conventional loan on an investment property, a borrower is required to come in with 15-20% down. There can be a seller carryback as well, but this would be after the borrower's contribution. Essentially, the combined loans on the home cannot be 100%, as this is high risk for default. I'd wager most hard money and Non QM lenders wouldn't like the idea of 100% financing on a property either without a contribution from the borrower since the borrower really has no stake in the game.