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#1861953 - 10/16/13 06:26 PM Seller providing down payment
Patricia Offline
Gold Star
Joined: Mar 2011
Posts: 327
Kansas
Applicant applying for primary residence but doesn't have enough for down payment. Seller has agreed to make a loan to the buyer for the down payment. This will be a portfolio loan, not sold in the secondary market. Would this be an acceptable form of down payment?

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Lending Compliance
#1862096 - 10/16/13 09:32 PM Re: Seller providing down payment Patricia
Rocky P Offline
Power Poster
Joined: Jun 2003
Posts: 7,258
Florida
There is limited information, but - IMHO - NO! But the bank's loan policy might be different.

The applicant has no savings/equity in the deal/money, so is getting 100% financing with the bank's full knowledge. (S)he, not only having no money will have to be paying both loans concurrently.

The 3 parts of a loan
Loan to value - 100%
Debt to income - 2 loans concurrently - make sure UW knows
Credit - no idea
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Integrity. With it, nothing else matters. Without it, nothing else matters.

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#1862178 - 10/17/13 02:05 PM Re: Seller providing down payment Patricia
Patricia Offline
Gold Star
Joined: Mar 2011
Posts: 327
Kansas
Thanks Southern Banker -- will pass this on the Loan Officer and UW.

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