Originally posted by @John Matthews:
@Brandon Johnson
So I'm not a mortgage expert, but I think most banks won't be comfortable with them holding a big note on the property. You may be able to get a small, portfolio lender to do it, provided it's a second position note though. I think you'll spend quite a bit of time asking around though.
Is it a good deal though? Are you buying well under market? If you are, then you can likely find a hard money lender / bridge lender willing to do the deal though it'll take some digging. If you network you can probably even find a private lender do it if the deal is good enough.
I do know one thing though, banks will not allow you to use loan money as a down payment...unless it's seasoned. So if you take out a loan, from anywhere (lending club, say) once that money has been sitting in your bank account for 60 days, you can use it, it's yours. As long as your DTI is below the banks required max (around 0.4-0.45). You may also be able to use gift money as long as the giftor can show they had the money for 60 days.
I'll bring @Ben Leybovich into this one, but I can tell you what he'll say: you can't use creative financing to make a bad deal good, but you can use it to make a good deal great.
Ben is a good one.
I'll go further if you need to go Funky you probably aren't ready to do a BUY.
Not saying creative is bad..... It depends.
Think about it banks have standards. They got lawyers. They got actuator.
