I have some questions:
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Is the wraparound mortgage, something I can refinance to gain title to the property?
Or will I still need to get a purchase loan to complete the transaction? -
If I used a Land Contract to purchase, does the property being purchased have to be owned free and clear of any mortgages by the seller?
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Notwithstanding a “Due on Sale” clause, is it possible for the seller to extend seller financing in the form of a Land Contract?
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Is the broker correct when he said it could not be done that way?
I opted to purchase 2 seperate parcels, a 23 unit and a 34 unit building(s) using a land contract, when the new broker learned of my method of purchase,(LC) he stated I couldn’t because the seller needs to own the property free and clear; he then suggested a wraparound mortgage.
- Would I still need a down payment(20%) to obtain this loan if I purchase with a wrap?
As I understand it, a down payment is not required when refinancing a mortgage(in this case a land contract), but it is required on a purchase loan…for the most part.
Can anyone help with these questions?
- Is it easier to refinance a commercial loan, or obtain a purchase loan with a lower credit score?
Mid-score of 597
Thank You
CNYInvestor