Can a second mortgage note on one house be used as a downpayment on another?
jdbnosik asked:
When my husband and I sold our home, we took back a 5-year second mortgage for the buyer. Now that we’ve found a home we want to buy, we don’t have enough cash for a down payment, but would like to use the second mortgage as the down payment, and sign it over as a deed of trust with assignment of rents … or something like that. What we’d like to know is whether or not that can be done? Or, if that can’t be done, what kind of transaction can occur that would allow us to us to use that second mortgage as the down payment? I’d appreciate a response from a knowledgeable real estate person, mortgage lender, or other financial/contracts professional. Thank you. jdbnosik
Jennifer
When my husband and I sold our home, we took back a 5-year second mortgage for the buyer. Now that we’ve found a home we want to buy, we don’t have enough cash for a down payment, but would like to use the second mortgage as the down payment, and sign it over as a deed of trust with assignment of rents … or something like that. What we’d like to know is whether or not that can be done? Or, if that can’t be done, what kind of transaction can occur that would allow us to us to use that second mortgage as the down payment? I’d appreciate a response from a knowledgeable real estate person, mortgage lender, or other financial/contracts professional. Thank you. jdbnosik
Jennifer
Tags: Downpayment, Mortgage Buyer, Mortgage Note
July 27th, 2009 at 6:46 pm
Bruce
dependson what “mortgage” means oh and “downpayment” i dont understand that
July 31st, 2009 at 4:34 am
Stanley
Yes. A second mortgage note can be used as a down payment. As a matter of fact, anything of value can be used as a down payment as long as both parties agree. A lot depends on the seller of the home you are buying. If it is an individual that can sell with owner financing they may be flexible enough to take part of the down payment in cash and the other as a note. Be sure to check with local real estate laws in your state. Each state is different. Get a good real estate attorney to represent your interest and draw up the papers. You should be fine.