Will a bank accept a second mortgage financed by the seller?

Asked by Dan, Queens, NY Thu May 28, 2009

I am buying a two family house in Queens, Ny and have 13% to put down. I am getting rates almost a full point higher with putting 13% down, as opposed to 20% down(plus the added cost of PMI). The seller is willing to finance the 7% as a second mortgage at at great rate for me. My question is with the tighter lending standards, will the banks allow this?

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5
Rebeccatrulia, Renter, United Amigos, Mesa, AZ
Thu Sep 26, 2013
Second mortgage is an ideal solution only if you really need it. However, I still believe that before applying for a personal loan such as 2nd mortgage, you should be able to assess yourself if you have the resources to pay-off your debt.If yes, then find a lender that offers low interest and decent terms.

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0 votes
Kimberly Cra…, Agent, Garden City, NY
Sun Aug 11, 2013
So effectively, the seller is willing to lend you cash and have a lien in 2nd position on the house, behind the first mortgage (which will now be 80%, therefore conventional), a creative loan officer and attorney should be able to make this happen. I have several that I work with on these kinds of transactions. Feel free to contact me for several great choices. 516.426.9459 or KCrail@KW.com

While I am not a mortgage expert, my finance background serves me well in real estate.

Best of luck,

Kimberly Crail, MBA, CPA
Certified Buyer Representative
Lic. RE Salesperson
Keller Williams Realty Gold Coast.
0 votes
Anna M Brocco, Agent, Williston Park, NY
Fri May 29, 2009
For an accurate answer why not speak to your loan officer, you will need their sevices anyway.

Anna
917-576-5376
abrocco@laffey
0 votes
Gail Gladsto…, Agent, 11743, NY
Fri May 29, 2009
The simple answer is yes. As long as the bank is in first position, you are fine.

If you are looking for a mortgage broker/lender, I would be happy to share referrals with you based on success stories. I can be reached at 631-425-6150 Gail@GailGladstone.com.

I am NOT a mortgage broker....I am a Realtor.
Web Reference:  http://GailGladstone.com
0 votes
Lisa Brodsky, , 10950
Thu May 28, 2009
Dan,
A seller second IS allowed if it is all disclosed in an FHA loan...it could be with other lenders, but highly unlikely in todays market and economic times....talk with an FHA knowledgeable lender! If I can be of any help..please let me know.... Coldwell Banker Mortgage (PHH) is a direct lender and handles FHA loans...I would be happy to put you in contact... I am a premier agent for Coldwell Banker Mortgage...and have my own "800" premier agent line....I would be happy to share it with you, you will go to the top of the que......let me know...
NO OBLIGATION! Give me a call...or email... lisa.brodsky@coldwellbanker.com or 845-401-1448
Good Luck!!
Lisa Brodsky
http://www.HudsonValleyNeighbors.com
0 votes
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