Finding lenders that allow partial seller financing

[Josh Prentice]

I have a deal with the seller where I pay 10% downpayment and they are willing to be in second position for the rest. However I need help find a lender to allow the seller helping me out with the downpayment. Does anyone know who allows this or where I can find lenders that allow partial seller financing?

[Doug Smith]

Hey Josh, can you define "retail investment property"...as it strip mall or what type of property are we talking about. That will completely change the program. For residential, you can do a "piggy-back" second, but a lender is still going to want to see some skin in the game from you in one way, shape, or form. For instance, sometimes we'll use an "80/10/10" where the buyer puts down 10%, and the seller carries back 10% or we do a piggy-back 2nd to get the first to 80% to avoid PMI, but loans for investors require more skin in the game. Default rates are exponentially higher for those borrowers that aren't putting in their own money. That goes double if the property is non-owner-occupied.