By: Robert A. Hulme - Realtor - Loan Officer -Utah County, Including Provo, Orem, Pleasant Grove, American Fork, Lehi, Highland, Alpine and Cedar Hills, Eagle Mountain, Payson, Saratoga Springs, Spanish Fork, Springville, Mortgage Xpress, Agent
In today's Housing market many Sellers have had to use their imagination to try and sell their homes. One of the programs that is starting to be used more often is that of Seller Financing. The way this can be used is to "carry back" a second mortgage to help facilitate the purchase of the home. This can happen when the seller does not need all the proceeds from their sale in order to purchase their next home. The advantage to the buyer is that by combining the down payment and the second mortgage from the seller, you may be able to avoid paying mortgage insurance and save yourself some money.
If such a carry-back is part of your offer, you should include the terms you wish to pay on such a second mortgage. Keep in mind that your first trust deed lender needs to know this information so they can underwrite your loan, and they have certain minimum requirements. The minimum term of the second mortgage can be five years. The minimum payment can "interest only". Longer mortgage terms and payments that also include principle are also acceptable.
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