Seller Financing & DSCR loan

[Yusuke Koike]

Hi

Does anyone give me a professional advice on seller financing?

As you know, recent interest rate has been increasing. 
This increase killed my deal so many times. 

Do lenders generally NOT allow a borrower to bring a down payment by using seller financing?

e.g. I purchase a property at $300K

1. Seller accepts seller finance for 40% of the price.
2. I will put a 10% down.

Do you think there is a lender who would be able to fund another 50%.  

Yusuke

[Yusuke Koike]

Quote from @John Karg:

Hi Yusuke, 

As others mentioned, this would be fine. However, I am wondering what the benefit of using seller financing would be, when typically the rate would be similar to that of a regular mortgage. Is this going to be an investment property or your primary residence? There are plenty of options to put 10% or less down if it's a primary residence, and I even work with 100% LTV FHA loans.

Thank you for your advice.
It's for investment purpose, not for primary residence.

If the seller is very motivated to sell, they could accept 4-5% interest easily. But most of them does not want to 100% finance. In that case,
40-50% seller finance
50-60% finance

For investors, there are two merits
1) seller finance portion is at lower interest rate than another portion from the lender
2) maximize leverage