Seller-financed down payment and Loan for the balance

[Christian Rivas Plata]

Hello everyone!

My partner and I are looking into purchasing a multifamily building (6 unit) in Hartford, CT and trying to come up with some creative ways to put the least amount out of pocket into this deal and still make it a win-win for the seller and us.

One of the things we are exploring is having the seller finance the down payment (20-25%), but not sure how to go about it as I have been told that lenders would not allow the seller to put the down payment (a 20% mtg to the seller and 80% mtg to the lender... essentially us not putting any money or "skin in the game"). But i cant imagine this hasn't been done before.

Has anyone tried/done this before? How did you go about doing it? Or am i approaching this totally wrong and unrealistically?

Thank you in advance for you responses!

[Mark Durham]

It can & has been done. You go about doing it by 1st asking the seller if he/she will do it, then 2nd, asking the lender(s) they'll allow it. 

You may have to contact more than 1 lender. Some lenders may not allow it, but I'm sure you'll find 1 or more who will if you keep looking and asking.