piggyback loan

[Dustin Gott]

I know banks wont allow you to seller finance a buyers down payment. Is there anything preventing you from having the buyer put 20% down at closing then after it closes loan them the same amount and put a lien on the property which they pay you interest on? Same exact thing as a piggyback loan but it comes after the closing.

[Jon Holdman]

That would be loan fraud. Any transactions between the buyer and the seller MUST be disclosed on the HUD-1.

FHA loans can still be had (unless something's changed in the last couple of months) for 3.5% down.