Seller Carryback Workaround?

[Pete Sailhamer]

Hey everybody. I am looking into purchasing another multifamily and wanted to ask the seller to carryback 10% of the loan to help with the down payment. But when I checked with my lender, they only will lend with a combined 80% LTV, including the seller financing portion.

Advice from a colleague was to set up my own financing on the back end of the closing, meaning I would close using my own money, but then have the seller (or private investor) lend their funds and take a second mortgage post-closing.  I don't want to do anything illegal, as well as I don't want to hide anything from my lender.  I have a great portfolio lender than I want to keep solid relations with for years to come, so I don't want to jeopardize that.  Would this strategy likely be frowned upon by my lender, or is this a normal technique?  I wanted to hear from the BP community before seeing if I should pitch it to the lender.    Thanks!

[Dion DePaoli]

The loan program they quoted you says it only allows an 80% Combined (first and all juniors) Loan To Value.  So any loan structure, even post close, would violate their guideline.  Is it illegal?  No.  May they call the note due?  Depends on the security instrument language.  Sometimes commercial loans will have a clause that restricts subordinate lending, which is what that would be.  

In some sense, they said "No" and you are asking everyone else to say "Yes" while stating they (bank) are the ones whose statement matter.