I’m looking to make my first real estate purchase in New York. I found a 3 family property that I’m very interested in purchasing but I don’t want to use any of my bank funds for the down paymentl. How can I structure this deal so that the owner pays for my down payment?
-Reo
You ask the owner to carry back a 2nd. Or, you just go get 100% NOO loan to start with.
You can have the seller pay the closing costs, but not the down pmt.
REO11211,
I wasn’t completely accurate in my post. You can have the seller pay your down pmt, it just has to be under the table.
Example on a $90,000 property
You bid $100,000 with the seller paying 3% of closing costs
You Put down $10,000
The seller agrees to give you $10,000 in private after the closing which was your down payment for giving him $10,000 over asking price. This is risky because there is no proof of your $10,000 arrangement and it would be completely on the honesty of the seller to give you the money as agreed.
It’s also called loan fraud.
Thats True. Or as I put it ''under the table". But it is done and will always be done.
The posted question asked “how can I structure this deal so that the owner pays for my down payment”. So I posted an answer.
But I agree, this is mortgage fraud. 