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

Jackie N asked:


My husband and I are considering taking out a small second (approx $10,000) on our condo to pay the 3% downpayment required for a second home. We plan on using the FHA loan. Are we able to do this? We live in California, and lending rules are becoming very strict. Thank you in advance.

Anne

sunnysideup asked:


I feel a little taken avantage of. Hubby and I qualified for a $100,000 loan in Ohio (FHA loan). We are first time home owners and feel that we got the raw end of the deal. The loan itself is nice. We bought our house for $96,900. We didn’t put down a deposit on it, the lady that we bought the house from put down One Thousand and something dollars. We have a fixed intrest rate of 5.9%. Well they have also added on a second mortage for the downpayment that we didn’t put down. (I think that is what the 2nd mortgage is for) It was almost $4000, with a 7.9 fixed intrest rate. I am really confused (BTW, we have lived in our house over a year now), isn’t it like this : we bought our house for 96,900 (lady put in an extra thousand something)…but have a 2nd mortgage of around $4000. It is like we have spent $100,900 on our house??? This is probaby confusing, but I don’t want to sound silly calling up our bank and asking them. If someone can make sense of this to me…
I hope it makes sense!

Jeffrey