80%LTV & 100% seller financed 36 months? what does this mean?

Answer 1

LTV means Loan to Value...so for example if the mortgage balance is 80,000 and the appraised value is 100,000 that property is at 80 LTV. Seller ffinancing means the seller will give you a loan for 36 months and will do it at 100% financing. looks like using our example above he is selling the house for 80,000 and its worth 100,000 he is willing to finance someone for 80,000. hope this helps

Answer 2

Need more info. 80% LTV means a loan for 80% of the purchase price (or appraised price if it is a refinance). 100% Seller financing for 36 months is an incentive to get you into the property for the next three years. Probably to set you up to find 80% LTV financing after the term.

Answer 3

the seller will be happy to tell you exactly what he means if you show any interest at all.

It looks like if you put 20% down, the seller will carry the balance for 36 months. It fails to mention any interest rate, nor whether the loan is interest-only or amortizing. [On a house, amortizing over 36 months would be very high payments.]

I presume the idea is that interest rates will go down over the next 3 years and thus you'll be able to refi at a lower rate than today.

That said -- there is nothing free in real estate. In exchange for this 'great deal', it seems likely the seller's asking price was raised to the high end of the market range for what he is selling. Especially if an agent is involved.

Still, if you are a hard shopper and good negotiator, maybe there's something here for you. Get a good price with good rate on an interest only deal and you might do ok with this.

Depending on the property, area and local trends, of course.

:-)

Answer 4

It may mean the combined loan to value is 100% so you are getting an 80% loan from a financial institution and the seller is financing 20% for 3 years. You will either pay the seller directly (the payment will be in the paperwork) or the seller will not require repayment (called forgiveable)