Seller carrying part of the down

[Alex Tobias]

Anyone have experience with the seller carrying, say, 10% or so? I'd put 10% down while they carried another 10% Maybe you know where I can find more info on this? My main issue with this is curiosity of a typical bank response to this. Is this something a bank would run from? Thanks everyone!

[Matt Lefebvre]

That depends on what type of property you're talking about @Alex Tobias. For commercial mortgages, I typically see lenders allowing a 75% LTV and allowing a second mortgage to be held by the seller, so long as you are personally putting up at least 10% and all of the numbers still work from a cash flow perspective.

If you're talking about a residential mortgage, nope.  Not gonna happen.  Seller seconds are a thing of the past.  

And as a reminder, in either case, if you do NOT disclose to your primary lender that you're having the seller finance a portion of your downpayment, that's considered mortgage fraud.