Lending w/ seller financing or credits

[Paul Duncan]

Is it possible to get into a loan with a bank by using seller credits or seller financing as a down payment?  If I have a bank who will let me do 20% down on a mobile home park or small apartment building by keeping it as an in house commercial loan, will they let that happen?  For example, if I wanted to purchase a $1M property and the seller was willing to credit $200,000 at closing, will the bank accept that as my down payment, or do they want to see the $200,000 coming from my account?  I realize on the residential loan side that can't happen, so my question is geared more towards portfolio/commercial loans.  And if that wasn't a credit, but instead a $200,000 seller financed note, does that change anything?

[Aaron K.]

It will depend on your lender, as they can vary more widely, but my gut instinct tells me that this is not possible and that the lender wants you to have at least some skin in the game.