Help please - help me get creative

[Lance Mundo]

I'm preparing to make an offer on a home that is currently under mortgage by the owner. He is selling FSBO. My idea was to get creative with the financing, and offer him several options for the deal. I'm pre-approved for a DSCR and conventional loan. This is an income producing STR/vacation home.

My ideas for options are:

1. DSCR with seller carry back of the down payment, at 5% for 25 years, with an option on my part to pay in full after one year.

2. Taking over the loan subject-to, and paying his equity stake as a seller financing at current market rates.

Would anyone have an example letter of intent/contract for something like this that they would willing to share?

Is there a different option that I could offer that would include giving him full asking price, but in creative terms?