STR DSCR loan + seller finance

[Sean Bramble]

Hey everyone - has anyone used a STR DSCR loan with seller finance in second position? I've heard of this being used on multifamily deals, but wasn't sure if STR DSCR loan products typically allow this... and if not, if there are any creative (legal) ways around it

Example: 80% LTV DSCR + 10% seller financing + 10% down

[Zach Edelman]

If your DSCR lender does not allow for a second position, those that don't may allow you to get down payment help with an alternative way such as a gift. Where you may run in to trouble is if the down payment assistance is through the medium of a recorded lien.