Seller financed down payment

[Sean Bramble]

Hi BP - I've posted about this topic before, but wanted to ask an open ended question instead. I have a seller who is willing to finance down payment funds, but my lender does not allow for a second lien on the property. How can I legally do this deal while still giving the seller the property as collateral? Is it possible?

[Billy Daniel]

Our favorite lender will do this.  The catch is that the owner has to take a second position on the lien.  That means if you foreclose, the bank gets their money first and the seller gets whatever is left over.  Ask around to a couple of different banks and ask about commercial loans.  There are banks who will do this.

Would the owner do 100% financing?  Thats always an option.