Financing transaction with seller taking 2nd

Hi all,

Can someone shed some light on how to structure conventional financing for part of the purchase price when the seller is willing to carry back a 2nd mortgage?


Purchase price: $100,000
Seller 2nd: $ 30,000
Need financing for: $ 70,000

Will any/most/few financial institutions finance a portion of the purchase price to allow the seller to take a 2nd?

Is it possible?

What’s the name of this type of financing?

Is it better to use a HML instead?


You would be much better off using hard money to purchase then going with a conventional no-seasing refi.

If you plan on having the seller carry a 2nd, it does not mean you will be avoiding the downpayment. The bank will most likely look at how much they are financing and ask for downpayment. You need to let your mortgage broker know there is a sellers 2nd so the 1st bank knows. It will be recorded at the time of closing.