chaberek Posted January 15, 2005 Report Share Posted January 15, 2005 Please advise:I'm selling a house to my friend.Since he's got some terrible credit, he qualifies only for 80 LTV. Is it possible for me to finance the rest(15% with his 5% down payment)? What's there for me? Thanks Link to comment Share on other sites More sharing options...
liverichly Posted January 15, 2005 Report Share Posted January 15, 2005 Sure, it's called seller carried financing. Used to be very common when second mortgages were either too high rate wise, or unavailable. A lot of lenders allow this type of financing to close simultaneously with a 1st mortgage. Will the 80% 1st mortgage pay off all the debt secured by the home? Link to comment Share on other sites More sharing options...
firstsource Posted January 22, 2005 Report Share Posted January 22, 2005 If you decide to go through with this, 2 suggestions, if you want to continue with the friendship.1) Have a lawyer/etc draw up the note, and make sure that it is filed/recorded so you have a lien against the property.2) have the payments go to a 3rd party, ie a bank escrow department or a title company. So the friend can not say " I gave you the check last week" and you did not get it. Best to keep it a business arrangement. Good luck, and yes, it is a common thing any more. One last thought is to have the note have a 3-5 year balloon payment. That gives your friend enough time to get his credit up to where it needs to be, and you will get the balance of your money in a reasonable time. Charles Link to comment Share on other sites More sharing options...
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