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How do third party loans work?

When you get an indirect, third-party loan, youre working through an intermediary, typically a dealer, instead of directly with a lender. Direct loans: These are loans that you get directly from the lender, typically from a bank, credit union, or online lender.

Which types of loans can be used with the third party financing addendum?

Third party financing is any loan you take to purchase a home this can come in several different forms: conventional loans, Texas veterans loans, FHA loans, VA loans, USDA loans, and reverse mortgages (they are not often used to buy homes, but it is possible).

Which types of loans can be used with the third party financing addendum?

Third party financing is any loan you take to purchase a home this can come in several different forms: conventional loans, Texas veterans loans, FHA loans, VA loans, USDA loans, and reverse mortgages (they are not often used to buy homes, but it is possible).

What does 3rd party financing mean?

The SBA defines the Third-Party Loan as a loan from a commercial or private lender, investor, or Federal (non-SBA), State, or local government source that is part of the project financing. So while its rare, the Third-Party Loan could be from an individual or government source.

When should the third party financing addendum be used?

This Addendum is used when any type of financing for all or part of the purchase price will be provided by a third-party (not the Seller or Buyer).

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