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Updated almost 10 years ago on . Most recent reply

User Stats

36
Posts
1
Votes
Dennis Standers
  • Homeowner
  • Roseburg, OR
1
Votes |
36
Posts

Seller finances the down for FHA ??

Dennis Standers
  • Homeowner
  • Roseburg, OR
Posted

Hi All, I am trying to structure a deal in my town to get started in REI. My question is would the banker go for a seller financing the 3.5 % down and going FHA for the rest. I am wanting to buy a duplex one side is already rented. This should cover the FHA loan. Owner is asking $120,000 for the property. We are prepared to offer the seller 8% on $4,200 paying off in 9 months. My question is...Is this a doable proposition? Will the Mortgage co go for it? Is it legal? What are the issues with my thinking? Thanks for the help. Dennis

Most Popular Reply

User Stats

230
Posts
138
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Mark F.
  • Investor
  • Orange County, CA
138
Votes |
230
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Mark F.
  • Investor
  • Orange County, CA
Replied

@Dennis Standers

FHA won't allow the seller to finance the down. Gift funds are allowed, but they have to be from somebody that doesn't have a direct financial interest in the transaction. For more on gift funds, check out the following link (no affiliation):

http://themortgagereports.com/2669/downpayment-gif...

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