Mortgage Grapevine

Who can do Seller Carry Back Loans ?

In August 2005, husband and wife purchase a condo in San Mateo County, CA. for $400,000., and got 100% financing.

They did not occupy the condo, the wife’s brother moved in and he has been paying the mortgage, taxes, and HOA fees from the beginning.

The condo now has an appraised value of $460,000.

The total mortgage balance owed on the condo is $399,000.

The husband and wife would like to sell condo to the wife’s brother.

Can sellers do a 10% carry back, and let the buyer get a 90% purchase loan ?

Loan amount would be $414,000.

Who will do the 90% purchase loan ?












by jg510 October 12, 2007 12:00 AM

OK, what´s the catch. Only sellers.
by GWallace October 12, 2007 12:00 AM

jg, I couldn´t resists. I´m sorry.
by GWallace October 12, 2007 12:00 AM

I think jg is the Seller? Surely this deal isn´t for real, that or jg has been in the biz about 6 hours.
jg- post the scenario. Give the Borrower´s (Buyer´s) information including: Employment History, Credit Scores in addition to noting the fact that it is a Non-Arms Length transaction, what LTV the Borrower can work with, what the Seller is willing to do to assist (2nd and any closing cost contributions), whether or not the rental / payment history can be supported with canceled checks from your borrower.
Then and only then can anyone make heads or tails of what can be done for them. As for you, all that can be done is some serious one on one with your manager and a whole lot of guideline review.

Good luck-
HiT
by Harley in Texas October 12, 2007 12:00 AM

the borrower has been employed as a automotive technician for 9 years, and is a first time buyer.

his mid fico is 744

the new 1st mortgage will pay off the existing liens, and also cover all the closing costs ( non recurring and prepaid items)

so the borrower will not have to come up with a down payment or money for closing costs

this will be a 90/10 so 100% CLTV

I am looking for a lender that will do this loan



by jg510 October 12, 2007 12:00 AM

jg-
I´ve tried, I bet your AE´s love you.... it´s like pulling teeth here. There are hundreds of people reading this that can help you but you have to provide EVERY fact of the scenario in order to ensure you get accurate responses.
The little things like "Buying the home they have rented" and "Non-Arms Length" can kill a deal in the 12th hour when you fail to mention it to an AE.

#1. I would start a whole new thread using the Loan Scenario engine.
#2. I would include all the information you listed above.
#3. I would note the fact that it is Non-Arms Length Transaction.
#4. I would note the fact that they are buying the home the live in. In addition to whether or not it can be supported by cancled checks.
#5. I would not the Sales Price / Loan amount as you may be over some lenders limits.

Again, Good Luck!
HiT

by Harley in Texas October 12, 2007 12:00 AM

Assuming they have cancelled checks for the last 12 months, do it as a land contract rate and term. It should go conforming with little problem. If not, do it as a gift of equity purchase. Either one should be pretty easy. Try Chase on their A side.
by lighthouse1 October 13, 2007 12:00 AM

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