Seller and Broker Financing
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 f you are in a buyer's market, you may be able to convince the seller or their broker to help you close the deal.
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Seller financing
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If the seller doesn't need the money from the house immediately, they may offer to help finance either part or all of the mortgage for the buyer.
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This makes the house more salable, especially when the market is falling. Also called Seller Take Backs and Purchase-money mortgages, both sides need to be careful about structuring the guarantees.
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An example
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In the case of a down payment, you could put down 5%, the seller "takes back" or lends another 15% of the selling price to you, and the balance comes from the mortgage lender who can then offer a conventional (80% LTV) loan, which doesn't require PMI.
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Some sellers are even willing to take the full mortgage in order to have regular income for many years, or to make a deal in a difficult market.
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Broker take backs
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The broker is the seller's agent, and wants to make the sale. If the seller approves, the broker may loan money to the purchaser to buy the house. The money available for this comes from the broker's commission, typically 6% or so of the selling price. So on a $100,000 sale, the broker will make up to $6,000, which he or she can "take back " or lend to the buyer for the down payment.
There's every reason to find out if this is an option for you, but it isn't common.
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Brokers are not usually this anxious to make a deal, and if they are, it is probably also true that they need the commission income immediately. And as multiple listings are the norm, the broker will have to split the commission with other agents and brokers, making the available sum negligible.
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