Down payment options (seller financing deal)
Can I use a DSCR loan for the down payment on my seller financing deal or what other loan options are out there for this particular situation? I've just secured a property and am short on cash for this current opportunity.
Thank you for your advice! I’m also looking for help with underwriting etc.. this would be my first seller finance deal.
#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
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#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
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No lender will lend on a down payment for an owner financed note. You are either going to have to partner with someone on the deal or find private money to put second lien on the property.
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Quote from @Daniel Frey:
Can I use a DSCR loan for the down payment on my seller financing deal or what other loan options are out there for this particular situation? I've just secured a property and am short on cash for this current opportunity.
Thank you for your advice! I’m also looking for help with underwriting etc.. this would be my first seller finance deal.
Unfortunately No. DSCR loan is a loan type that is not used to provide down payment assistance. Buying any property today with all leverage is strongly discouraged.
Quote from @Daniel Frey:
Can I use a DSCR loan for the down payment on my seller financing deal or what other loan options are out there for this particular situation? I've just secured a property and am short on cash for this current opportunity.
Thank you for your advice! I’m also looking for help with underwriting etc.. this would be my first seller finance deal.
No lender will want to be in second position. Why not use OPM?
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#1 Medium-Term Rentals Contributor
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No, I don't think any DSCR lender will allow this as it puts them in second position. Your best bet is finding a partner who will bring the cash to the deal or finding a private money lender. If the deal allows you could also wholesale the deal to an end buyer.
Thank you all. I have a few people that may be willing to assist with the down payment. I’d prefer to wait till I save more cash but this deal is to hott to pass up. God knows the next time I’ll have a shot at a laundromat….
Thank you all for the help!