What is Seller Carry-Back Financing?
It is when the Seller finances a portion of the purchase. An example would be you buy a home for $100,000, you obtain a 60% LTV BRAD LOAN ($60,000), you put up a $20,000 down payment, and the Seller finances the remaining $20,000 in second position behind the $60,000 BRAD LOAN. $60,000 BRAD LOAN + 20,000 cash down payment + $20,000 seller financing = $100,000 purchase price. In this example, in addition to down payment, you would need additional cash for 3rd party closing costs and loan fees unless the Mortgage Lender or Seller agreed to finance them as well, or perhaps the Seller is paying all or a portion of them.
