Who allows seller as second

[Remone R.]

There’s a 4 unit building that I want to purchase and the seller may be willing to do owner financing. Any suggestions helpful

[Robert W Foos]

Hi Ramone,

Sounds like it could be a great opportunity for you. Regarding your question about whether lenders will allow a seller's second, according to the Fannie Mae guidelines, seller financing is permissible as long as it's subordinate to the lender's first mortgage, but there are some important caveats to keep in mind. Here's the link to Fannie Mae's guidelines regarding subordinate financing: https://www.fanniemae.com/content/guide/selling/b2...

Even with seller financing, you're still looking at a required down payment of 25% as the maximum combine Loan-To-Value (LTV) is 75%.

Good luck,
Rob