Vendor Finance

[Adelaide]

Which banks will go with Vendor Finance - the sort where I buy the property and I pay the vendor back in a couple of years?
Where is a good place to go for advice?

 

[Terry_w]

None that I know of.

Is it commercial? Maybe possible.

 

[Rolf Latham]

Which banks will go with Vendor Finance - the sort where I buy the property and I pay the vendor back in a couple of years?
Where is a good place to go for advice?

How do u mean ??

Exiting vendor finance?

ta
rolf

 

[tobe]

I dont know of any that will willingly entertain a deal where the deposit is vendor finance. Many lenders wont accept a deposit if it is borrowed from a p/l etc.

Many lenders specifically exclude refinancing vendor finance as well.

Have you investigated your exit strategy?

 

[D.T.]

The best place to source vendor finance is from vendors.

 

[Adelaide]

Thanks folks.
I'm looking at buying a residential house at $400,000 and leaving $50k in the deal with the vendor and paying the $50k off in 3 years time. Basically, the vendor has a loan that is listed after the bank who is listed first.

While most banks won't look at vendor finance, I know this sort of deal happens out there. Sometimes they don't work out and sometimes they do work out.

Exit strategy is long term hold.

 

[Terry_w]

Thanks folks.
I'm looking at buying a residential house at $400,000 and leaving $50k in the deal with the vendor and paying the $50k off in 3 years time. Basically, the vendor has a loan that is listed after the bank who is listed first.

While most banks won't look at vendor finance, I know this sort of deal happens out there. Sometimes they don't work out and sometimes they do work out.

Exit strategy is long term hold.

This will be very difficult to get done beccause you are borrowing the deposit. This and the bank loan may mean you will not be contributing any of your own money. If this is the case you have little to lose and the banks and more importantly the LMI insurers are worried about people who have nothing to lose.

Will you be contributing any of your own funds? If you could get the 1st mortgage LVR under 80% if may be possible.

 

[tobe]

as said it may be posible under 80%, but the 1st mortgagee wont let the vendor take a 2nd mortgage. How are you going to payout the vendor in 3 years time?

 

[Mick C]

Which banks will go with Vendor Finance - the sort where I buy the property and I pay the vendor back in a couple of years?
Where is a good place to go for advice?

80% LVR. Standard rate from 5.00%.
Paying out existing vendor finance agreement.