Thanks for all who can help me.
I am trying to find out what the REAL restrictions are for seller downpayment from equity.
I understand all the reasoning for mortgage lenders not wanting the seller making the down payment (inflated pricing, etc, etc). BUT if I have a home legitimately valued at $92k and has existing mort of $31K and the seller just wants me to buy it for what is owed, actually I am looking at buying for say $60k and the seller (wife's father) will give me the proceeds that come to him after sale. He wants to just rent it from us for his remaining years at reduced payment but wishes to give us the equity where we would basically payoff vehicles and outstanding debts. Can the full down payment come from the equity through raising the price if it is still at say 65-70% LTV? To a mortgage lender it would seem like it would be excellent since the loan to value is low and would become lower since the down payment would reduce the mortgage anyway. I understand if buying close to full value this would be subject to much possible shadier dealings but with so much equity to utilize it seems it would be good even for the lender. What are the actual (read "real life") limits to this sort of seller paid down payment scenario?
I am in TX if it makes a difference.
Thanks again for the help.