How should I record a promissory note for bank loan and private loan for a down payment using the same property as collateral. When I buy the home do I just record the bank as the first position in deed and second position as the private loan as down payment on the same day. Will the bank still let me borrow on fha loan if I borrow from private loan for down payment or the bank doesnt care?
You would need the underwriters to approve the down payment loan. Typically banks want you to have skin in the game so want to see the down payment money coming out of your pocket, so chances are they will not approve it.
If they do approve it, the bank will insist that the their loan be in 1st position. The title company will take care of the recording at closing.