Property owner holding mortgage

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I'm new to investing and Bigger Pockets so if this is a stupid question please forgive me.  I'm investing in Rochester NY area. Looking for my first deal. 

If a property owner is willing to hold a mortgage note, with a balloon payment in 12 months while I rehab, do I as the buyer still have about the same closing costs?


You would avoid several fees in that situation:

1) no origination or underwriting fees on the loan.  Origination fees are typically 1% of the loan amount and underwriting fees $500-1000 or more.  So significant savings there.

2) no appraisal

3) no termite certificate or other fees.

4) Lender's title policy.  This can be a pricey item that your lender (aka seller) might be willing to forego.

You would still have the other fees associated with buying the property, mostly title company related fees.