Total monthly payment buyer qualifies for buyers

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Total monthly payment buyer qualifies for. Buyer’s situation
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Supplementing a New Loan Three factors in buyer’s financial situation shape design of seller second: How much money buyer has for downpayment. Total monthly payment buyer qualifies for. Balloon payment. Buyer’s situation
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Supplementing a New Loan When seller second involves balloon payment, it may be easy to refinance if: I Low interest rates I Property has appreciated substantially But if interest rates are high or property has lost value, refinancing could be difficult. Buyer’s situation
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Supplementing a New Loan Seller’s evaluation of second: Cash at closing Seller’s situation
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Supplementing a New Loan Seller’s evaluation of second: Cash at closing Monthly income Seller’s situation
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Supplementing a New Loan Seller’s evaluation of second: Cash at closing Monthly income Timing of payoff (balloon payment) Seller’s situation
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Supplementing a New Loan Seller’s evaluation of second: Cash at closing Monthly income Timing of payoff (balloon payment) Yield on investment Seller’s situation
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Supplementing a New Loan Seller’s evaluation of second: Cash at closing Monthly income Timing of payoff (balloon payment) Yield on investment Tax consequences Seller’s situation
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Supplementing a New Loan Seller’s evaluation of second: Cash at closing Monthly income Timing of payoff (balloon payment) Yield on investment Tax consequences Lien priority Seller’s situation
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Seller Seconds Seller second can also be used to supplement buyer’s assumption of seller’s existing mortgage. Supplementing an assumption
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Seller Seconds Seller second can also be used to supplement buyer’s assumption of seller’s existing mortgage. Buyer makes payments to seller on the seller second. Buyer takes over monthly payments on the existing mortgage. Supplementing an assumption
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Seller Seconds Assumption is only possible if existing mortgage doesn’t have due-on-sale clause, or lender agrees to assumption. Even without due-on-sale clause, need lender’s agreement to release seller from liability. Lender generally applies its usual underwriting standards to evaluate buyer assuming loan. Supplementing an assumption
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Summary Seller Seconds i Purchase money loan i Land contract i Seller second i Assumption
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Seller Financing as Primary Loan Seller financing is most flexible when seller has clear title to property. Unencumbered property
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Seller Financing as Primary Loan Seller financing is most flexible when seller has clear title to property. Buyer and seller negotiate price and terms. I Buyer needs less cash for seller financing. I No discount points or origination fee.
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  • Spring '10
  • N/A
  • Contract Law, seller, land contract, Seller financing

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