Questions about loans on new construction

[Sean Winchell]

Hi BP!

   I am looking to purchase a property that is a tear down and build a duplex or triplex on it. I wanted to live in one of the units. My question is if i purchase the property as seller finance and there is a promissory note what are my options for loans on the new construction? Thanks any pointers or where to look would be helpful.

[Bryant Brislin]

Typically, the existing note from seller would have to be paid off through the construction loan.  Even if the selller was willing to subordinate and be in junior/2nd position to the new construction loan, I don't think the construction lender would like there being another note on the property.