Land Loan Specialist
20% Down payment

Veteran for Veterans
Zero Down Mortgage Loan

Rural Development Loans
Zero Down payment

Michigan FHA Mortgage Loans 3.50% Down Payment

Michigan Seller Second Mortgage

Seller held second is one way to get equity into a home without any down payment, also a good way for a seller to sell a home. This also keeps the value of homes in the area at true market value.

If you would like to know more on this option you may call or email us: (616) 301-1811, or Rommie.Bailey@Michigan-Inter-Lake-Mortgage.com

This a great way to purchase a home without any down payment or pay higher for another mortgage loan with a lender or one loan with PMI. Many times the sellers will have a forgive me clause - indicating if the buyers make their payments on time for a given period of time that they may not have to pay on the second mortgage.

Buyers will apply for a first lien mortgage loan with a lender for a certain amount of money. The sellers loan will make up the difference, sometimes this will also include the closing costs for the first mortgage.

Example Of This Type Of Loan

Mr. Smith would like to purchase a $350,000 home from Mr. Doe. However, Mr. Smith only has $50,000 for the down payment and the lender has approved Mr. Smith for a mortgage loan of only $280,000. Mr. Smith is short $20,000.

Mr. Smith negotiates with Mr. Doe for a second mortgage to be held by Mr. Doe for the $20,000. At the time of the closing, the lender provides the $280,000 first lien promissory loan note. Mr. Smith then signs the $20,000 second lien promissory note to Mr. Doe. Mr. Smith then provides the $50,000 plus closing costs to complete the purchase for his new home. The title company then records both notes on behalf of the lender and Mr. Doe. After a year (seasoning) Mr. Smith can refinance to payoff Mr. Doe. Then Mr. Smith has only a first lien mortgage with a lender. Make sure you have 20% equity into the property before you consider refinancing. A lender requires 20% equity into the property to get the best rate, anything less would require PMI or higher interest rate.

Example: With NO Down Payment

Ms. Smith is tired of renting and would like to purchase her own home, but she doesn't have any money or reserves and her credit is less than perfect. Ms. Smith has gone to several lenders with no luck. At one lender she was approved for $75,000 for a property valued at minimum $100,000. Ms. Smith went to a local realty company to see if they can help her. Mr. Listing had several properties with owners willing to hold a second lien loan note. After seeing many homes in the area Ms. Smith found the perfect home.

There are several ways to do these types of loans, the best way is simply ask.

A second mortgage is a secured loan that is subordinate to another loan against the same property. In real estate, a property can have multiple loans against it. The loan which is registered with the county or city registry first is called the first mortgage.

BBB
A+ Rating

Veteran Owned Company