help with owner finance deal

120000 asking price with 40000 down .i believe the 40000 is the owners payoff with his bank .im not putting 40000 on a owner finance .i wanna gain contorl so that i can put the house on section 8.what kind of offer can be made because the owner want th 40000 to payoff his bank because he is afraid of his due on sale clause.

IMO I would never give 40K down on a 120K property that you wish to section 8. We also need more numbers here partner. Like how much equity is there really, whats the place worth? There are many options here and I’ll give you one. Find a better deal. oops 2 idea’s, Give him 20% down so he can sell all or part of the note and pay off his mortgage. A note investor would require at least 20% equity. The seller could also get permission from the lender to carry the note, but in todays market he probably wouldn’t need it especially if the mortgage will get paid off shortly. Herbster

im trying to negotiate 120000 with 10000 down payment .4000 will be spread out over the first 12 months and the remaining 6000 will be due in 12 months as a balloon payment .the seller is trying to get a waiver of the due on sale clause.

Numbers will not matter if that house is not approve for section 8. Are you prepared for the tenants that come with section 8? Possible damages and constant repairs to the property?