Good evening
I have a property valued at $600000.
I only need 80% of the money now so what I was thinking of doing was offering deposit finance of 20% to the buyer coming in (repayments -principal payments only) so they would only have to get a 80% loan with the bank. My question is would a buyer be able to get a 80% loan with the bank knowing they have been given the deposit finance from the seller?
If so what lenders would do this?
Regards
Jay
It would be very difficult for the buyer to get finance if they were relying on that 20%. I don't know any lenders that would allow this.
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 Terry
Do you think if the buyer had 5% savings and I gave them the other 15% that they might be able to get a loan?
regards
Jay
If they had enough to cover a 5% deposit and costs then that could be enough to get the deal over the line without your involvement.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
thanks Jamie
As I want the property to sell quickly (at the moment not the case) and for me to get my price I thought it would make it easier for the buyer to only have to get a 80% loan
and therefore pay the price I want. Would that work?
Regards
Jay
It will still be difficult even if the purchaser has 5% genuine savings.
Are you contemplating taking a 2nd mortgage to secure your money? This could make it harder.
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
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