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.

dependson what “mortgage” means oh and “downpayment” i dont understand that