seller second subordinate financing: Mortgage Rules for Seller-Held Second Mortgages
- 05/27/14 06:49 AM
Did you know…that sellers may provide down payment assistance to buyers and hold a second mortgage? Depending upon the amount of equity that your seller has accumulated, this could be a great option for home buyers and good long-term income for your seller. These rules apply to both Fannie and Freddie conventional loans. Seller Second Mortgage Guidelines Loan must be at market rate of interest or higher Loan cannot balloon in first five years Loan must not negatively amortize Loan must be legitimate and not “forgivable” No prepayment penalty or restrictions Buyer qualifies for first & seller-second mortgage What does it … (0 comments)
Did you know…that sellers may provide down payment assistance to buyers and hold a second mortgage? Depending upon the amount of equity that your seller has accumulated, this could be a great option for home buyers and good long-term income for your seller.
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