Hey guys,
Just checking to see if many (any?) lenders out there are happy to finance up to 80% if the other 20% is from Vendor financing.
I’ve heard of the 90/10 lend, where the lender isn’t concerned where the 10% “deposit” came from, but I wasn’t sure if this included the vendor leaving 10-20% in the property.
Cheers,
Batts
Hi batts71
some banks (bank west don’t like it, but others do )
Depending on the volume and if new product different banks have different criteria.
Talk to you local broker and he will be able to give you a list he works with.
It is not uncommon and is becoming the norm in unit sales.here to help
I’ve spoken to a few banks about this, Liberty, Adelaide and Bankwest have said they would do it (in theory anyway, haven’t actually tried). It may depend if the second mortgage will be registered.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Thanks Guys,
I’ve heard that Rick Otton is promoting this technique in both buying and selling property. I had assumed that it must be becoming a more “common” practise now.
Do any brokers there have any direct experience with lenders accepting the 20% deposits as vendor financing?
Cheers,
Batts
Yes
Cheers Richard
Ph: (07) 3720 1888
[email protected]
http://www.yourstatefinance.comIP funding and US property finance
our specialityRichard Taylor | Australia's leading private lender
Thanks Richard,
It’s reassuring to hear from someone in the business that it CAN be done.
I’ve heard a lot of people talk about it in theory, but unsure if it was actually achievable.
Thank mate.
hi batts71
In new developments here in sydney is already the norm for most I know, and also put call options as a pre sale backed by vendor finance is now becoming popular.
bit new to the market so only a couple of lenders like it.here to help
put and call option translating to a vendor finance of 20%
wow. sounds like its an incredibly obtuse market.
cheers
brahms
Purveyor of Fine Finances
aka Mortgage Broker BrisbaneHI brahms
Not sure about obtuse but inventive yes.
The lenders are already excepting put call options as pre sales (up to 30% of the development)and by attaching vendor finance from the start the property from all intense and purposes is funded prior to completion and in return the site has no pre sale requirement (as 30% in the normal pre sale quantity that is required)
The funding is a smoother process and lending approved quicker.here to help
Originally posted by Qlds007:Yes
Cheers Richard
Ph: (07) 3720 1888
[email protected]
http://www.yourstatefinance.comIP funding and US property finance
our speciality***********************************88
Dear Richard,1. Which and where are the usual lending instituations which readily accepts a 20% deposit through vendor finance?
2. Any different in their lending terms and condition s=imposed subsequently?
3. Looking for ward to learning from you soon.
4. Thank you.
regards,
Kenneth KOH“Tea bagging” is becoming quite popular at the moment and really is one of the most popular types of vendor finance.This is where a buyer finances 90-95% of his property purchase and you supply the remaining 5-10% either by gifting or cash in.You carry back from settlement 2nd mortgage or first on other unemcumbered property
for 100% to 300% of loaned value with future interest capitalized.Discounts applied for early payout.No loan liability, no debt service and no applications http://www.rickotton.com
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