All Topics / Finance / part vendor finance how does it work

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  • Profile photo of Jacqui74Jacqui74
    Member
    @jacqui74
    Join Date: 2004
    Post Count: 10

    my brother has had an offer accepted on a property subject to finance. The bank has said he can have the loan if he gets rid of a personal loan for a boat. He is trying to sell the boat. I have heard of people getting the owners to leave $20000 in there property for a set time period as vendor financing so the sale could proceed. Is this possible and if so how does that effect the bank loan and how does he go about proposing the idea?
    Thanks jacqui

    Profile photo of Alistair PerryAlistair Perry
    Participant
    @aperry
    Join Date: 2004
    Post Count: 891

    Hi Jacqui,

    Most lenders don’t like vendor finance, so your brother would have to find one that is OK with this kind of deal.

    There have been a few posts on this subject before. I know Mortgageman, who posts here, has a lender that can do this type of loan.

    Regards
    Alistair

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    I don’t think vendor finance would help in this situation. The lender would want the personal loan out of the way probably because your brother’s income is not enough to service both loans.

    If he went for vendor finance he would be borrowing more (at hgiher rates and shorter terms), so this would worsen the situation.

    Terryw
    Discover Home Loans
    Mortgage Broker
    North Sydney
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    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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    Profile photo of byronent_2byronent_2
    Participant
    @byronent_2
    Join Date: 2004
    Post Count: 337

    Terry this is true unless he has income he is not declaring or can’t declare.

    Byronent
    Adelaide SA

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