Can a seller credit me for down payment?

[Garrett Jennings]

Hello!  Quick questions as I'm thinking about a deal here in Wisconsin.  A duplex in a great location that needs some work.  I do not want to house hack the duplex, therefore, I would put 20% down.  If I were to close on the property and provide my own 20% for the down payment, has anyone heard of a situation where the seller credits back that 20% and finances it over a term?  I am not sure if is allowed or something that's already common.  Would love to hear what you guys think.  Thank you!

[Don Konipol]

Quote from @Garrett Jennings:

Hello!  Quick questions as I'm thinking about a deal here in Wisconsin.  A duplex in a great location that needs some work.  I do not want to house hack the duplex, therefore, I would put 20% down.  If I were to close on the property and provide my own 20% for the down payment, has anyone heard of a situation where the seller credits back that 20% and finances it over a term?  I am not sure if is allowed or something that's already common.  Would love to hear what you guys think.  Thank you!

Actually it’s called mortgage fraud, as it violates a document you’ll sign prior to or at closing attesting to certain conditions surrounding the down payment.  Lenders modified their loan documents years ago to disallow all these “nothing down” schemes which depend on “outside of closing” deals.