Home Buying in Bullhead City>Question Details

delain1960, Home Buyer in Bullhead City, AZ

what does owner will carry down payment mean?

Asked by delain1960, Bullhead City, AZ Thu Apr 25, 2013

This question was asked from this property: http://www.trulia.com/property/3027529299-1964-Rio-Grande-Rd…

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The seller of the property is willing to carry a loan for the buyer and as with most loans the buyer has to have a down payment (10% or better). With this particular property the down payment would need to be 30%-40% in order for the seller to consider carrying a loan.
0 votes Thank Flag Link Sat Apr 27, 2013
Dear Delain:

Also know as "Seller May Carry" terms. Typically interim financing of 3-5 years with a 15% to 30% down payment providing time for the buyer to get a conventional or FHA, VA loan and pay the seller off at that time.

For more information: http://arizonahomesland.com/sellermaycarryhomes.html

Jeffrey Masich, Realtor, GRI, MBA
Arizona homes and land for purchase or sale
0 votes Thank Flag Link Thu Apr 25, 2013
I will encourage you to talk with your real estate agent about specific details.

In general, this owner seems to be advertising that they will extend a loan to the new Buyer if the Buyer has 20% of the purchase price to put as a down payment.
Or, to put it in numbers - if you agree that the purchase price will be $99,900, then the Seller expects the Buyer to pay him $19,980 at close of escrow, and the seller will extend a loan for $79,920. The terms of the loan are negotiable.
Web Reference: http://www.talktosteffy.com
0 votes Thank Flag Link Thu Apr 25, 2013
It means the owner will carry the loan with a down payment 20% of purchase price. Make sure you have a buyer's agent on this..
0 votes Thank Flag Link Thu Apr 25, 2013
Not sure what the terms of your agreement are. Your lender will usually loan up to 80% of the properties appraised value. Their mortgage lien would be in first position if the property is conveyed. The Seller would have a second mortgage for the other 20% or a portion thereof. That lien would be in second position and the Buyer would be making payments to both mortgages.
0 votes Thank Flag Link Thu Apr 25, 2013
Owner will finance if you put down 20% ...proceed with caution.
0 votes Thank Flag Link Thu Apr 25, 2013
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