Current deal- looking for lenders who are comfortable with 20% seller financing in2nd

Member since 2025 · 7 posts · 3 votes

Hello,

I'm purchasing a FSBO, $485k purchase price in florida, single family, investment loan. Seller is fine being in second position to the bank with a $95k note, interest only, 7 year balloon, no PPP.

Current bank i'm talking with offers great rates but still wants 15% down of my own money.

Looking for better. I've called local banks and loan officers are asking around, but not finding much.

I would've thought that the seller note would at least halve my portion for the down payment (going to STR it part of the year so need cash for furnishing etc.)

Would love some guidance on who to reach out to, or if the deal with 20% seller financing won't fly.

-Allison

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Devin PetersonBusiness Member
Lender · Sarasota, FL · Member since 2022 · 2k+ posts · 664 votes
2d
Hey Allison, there are definitely banks out there that will be okay with seller seconds, but they will typically still want a portion of skin into the game (I see 10% - 15% typically) want lender are you working with now in FL that gave you those terms?
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Allison Hertzberg
OP
Member since 2025 · 7 posts · 3 votes
2d
i'd be happy with 10% with the above terms and investment loan. I see you're in sarasota, should i give you a call?
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Jonathan Sawyer
Phoenix, AZ · Member since 2026 · 6 posts · 1 vote
2d
Yes we have a process where you can take advantage of the seller second to satisfy the down payment requirement. Shoot me a DM and we can get it set up
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John Leland
Specialist · I give advice - [email protected] - I focus on states where investing is profitable, reasonably safe & secure · Member since 2026 · 47 posts · 9 votes
2d
Quote from @Allison Hertzberg:
Hello,
I'm purchasing a FSBO, $485k purchase price in florida, single family, investment loan. Seller is fine being in second position to the bank with a $95k note, interest only, 7 year balloon, no PPP.
Current bank i'm talking with offers great rates but still wants 15% down of my own money.
Looking for better. I've called local banks and loan officers are asking around, but not finding much.
I would've thought that the seller note would at least halve my portion for the down payment (going to STR it part of the year so need cash for furnishing etc.)
Would love some guidance on who to reach out to, or if the deal with 20% seller financing won't fly.
-Allison
A lot of banks that made it through 2008 have long memories or have heard stories about how many people walked away from similar situations. I know you wouldn't, but others did and banks are particulary funny about not losing more money. Things are tighter now than they were. That isn't to say nobody will do it, it just means you have to dig a little harder.
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Brandye Richardson
Lender · Tampa Fl · Member since 2026 · 9 posts · 2 votes
1d
On a $485,000 purchase, the proposed $95,000 seller note represents approximately 19.6% of the price. The challenge is not simply finding a lender that accepts second-position financing; the first lender must approve the fully disclosed combined capital stack and may still require a minimum borrower contribution. Portfolio banks, local banks and private or bridge lenders may offer more flexibility than a conventional investment program. The key documents will be the contract, proposed seller-note terms, expected rent, property value, credit profile, liquidity and exact amount of personal cash available
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Bryce Axelrad
Houston, TX · Member since 2025 · 25 posts · 6 votes
31m
Allison, going from 15% down to 10% would keep another $24,250 in your pocket on that purchase. I’d compare the full cost of getting that flexibility, including both loan payments and the cash you still need for furnishings and reserves.
As a lender, the other thing I’d focus on is the seven-year balloon. With interest-only payments, that $95k seller balance isn’t being paid down. I’d want a plan for it that doesn’t depend entirely on getting a refinance later. The lower cash requirement can help now, but I’d look at the whole structure before giving up a good first-loan rat
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