Wrap Around Mortgage Upstate NY

1 Reply

Hi Friends,

One of my connections is selling a duplex in Rochester, NY for $85k. I proposed seller financing because my cash is tied up in another mortgage I just obtained. He said that wouldn’t work because he has a mortgage for $40k on the property. I’m thinking about proposing a wrap around financing arrangement. Does anyone in NYS have any experience with a wrap around? Can you confirm it’s legal? 

I’ve also never done a seller financing arrangement but if he is willing to do the wrap around, I’m thinking about proposing propose 10% down, 30 year amort, 5 year balloon, 7% rate. Are these fair terms? Does any have a recent seller financing transaction they can share the terms with?



I have no experience in WAMs so I am following this thread.  I would say that those terms are perhaps a bit too favorable to your friend.  I would start way lower, and try to get it on a 5-5-5 deal.  5 percent down, 5 %, and 5-7 yr balloon.