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

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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
HomeSmart
Arizona homes and land for purchase or sale
http://ArizonaHomesLand.com
JeffMasich@ArizonaHomesLand.com
480-556-0940
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
It means that instead of going to the bank to get a mortgage, the owner will finance it for you as long as you have a 20% down payment. Be careful on these....get a lawyer on never buy a house on what's called a "contract for deed".
0 votes Thank Flag Link Thu Apr 25, 2013
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