I have an opportunity to buy a partially owner financed home. The owner has said that he could finance $40,000 of the $230,000 asking price. I don't have any experience with owner financed purchases. Could anyone help me understand how I could best take advantage of this offering? The one investment property I have is bank financed.
I'm not sure if a bank would let me take his $40,000 and use it as a down payment? Any and all ideas are welcome to best take advantage of this!
You are going to need (absent a lease purchase or sub2/wrap agreement) some type of bank financing.
This depends on the type of loan. If you are going commercial, investor type loan, then they might consider it. If you are going owner occupied, secondary market conforming/FHA/VA it might be a tough go. My best advice, go see a mortgage banker/broker and see how they might go about structuring the deal. They know their products, what they can underwrite and what they can't.
If you get a sub2/wrap then you can refi out, a lease purchase will buy you some time to put it together.