Established Member
Posts: 39
Registered: ‎05-14-2014

80/20 Mortgage Loan

I want to buy my neighbors house, and move into it as my primary residence!  I do not have money for a downpayment but my neighbor said he would carry 20% on a second.  I make enough money to qualify for my house and the new one....problem is their anyone out their that would do a loan like that?  I know before the real estate crash in 07=08=09?  some lenders would do 80/20 or 80/101/0 thanks any advise would be appreciated....btw, the house appraises at 200, he will let me have it quick sell for 165, and again will carry a second for 20% of the 165.  Thanks

Valued Contributor
Posts: 2,248
Registered: ‎08-24-2013

Re: 80/20 Mortgage Loan

That's a tough one but maybe you can find a local portfolio lender [loans are not sold] that can make local decisions and set their own underwriting criteria. Because it will be your 2nd home until your current one is sold or rented out, the scenario gets a little more complicated.



Super Contributor
Posts: 8,360
Registered: ‎09-28-2007

Re: 80/20 Mortgage Loan

If you have 5% down, then there are lenders out there who will allow a seller carried 2nd up to 95% CLTV... so you get the 1st for 80%, seller 2nd for 15%, and put down 5% fro your own funds.

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