Seller financing as down payment

[Josh Birrell]

Hi everyone,

I have an opportunity to purchase an investment condo in NH and am able to get financing from the bank up to 80% at a decent rate. Problem is a shortage of cash on my part for the downpayment. The seller is willing to carry a second note for the remaining 20% with nothing down and also at a good rate and term. I am having difficulty, however, finding a lender who will accept a seller second as a form of down payment. Any thoughts?

Thanks
Josh

[Chad Ballard]

Josh,

I had the same issue and got some good advice from others(https://www.biggerpockets.com/forums/311-buying-selling-real-estate/topics/87523-working-with-a-bank-with-seller-finanacing).

I just finished calling about 30 banks and credit unions and found a local bank that was willing to do the deal if I could bring 5% to the table, most wanted more like 10% or 15%. They want you to have some skin in the game.