Posted on: 22nd Aug, 2009 07:23 pm
looking at buying a 500K home worth 725K. owner owns it free & clear...can i borrow against it say 200K and have him carry the rest
Hi,
You can enter into a seller carry back mortgage agreement with the owner. Here, the seller carries a mortgage on behalf of the buyer and help him purchase the home. This is done when the buyer cannot qualify for a loan of the full amount needed to make the purchase. However, if you want to borrow $200k against the property, you need to have your name on the title.
You can enter into a seller carry back mortgage agreement with the owner. Here, the seller carries a mortgage on behalf of the buyer and help him purchase the home. This is done when the buyer cannot qualify for a loan of the full amount needed to make the purchase. However, if you want to borrow $200k against the property, you need to have your name on the title.
thank you for your info.....i guess what i getting at is, which some are saying it cant be done is that i really wouldnt have any money out of my pocket doing this....borrow 200 against the home and have the owner carry the 300K...Is that wrong to do? i can make the payments thats no problem...what do you think?
Dannyzr11
If you are borrowing the money on the property by mortgaging it that is a good move but again owner will transfer only that much equity to you which is equivalent to the borrwed amount but bank does ask for the more equity than the current price of the security.
So in my opinion if you are borrowing 200 K you atleast need to have a equity with 250 K ,so accordingly you need to add your name in the title of the home.
As far as your question regarding its legal front, this is not at all illegal to do this.
If you are borrowing the money on the property by mortgaging it that is a good move but again owner will transfer only that much equity to you which is equivalent to the borrwed amount but bank does ask for the more equity than the current price of the security.
So in my opinion if you are borrowing 200 K you atleast need to have a equity with 250 K ,so accordingly you need to add your name in the title of the home.
As far as your question regarding its legal front, this is not at all illegal to do this.