It’s back… the 80/10/10 mortgage program which allows home buyers to put just 10% down and avoid having private mortgage insurance via a second mortgage/home equity line of creedit. The second mortgage/home equity line of credit technically does not have to be at 10% with the first mortgage at 80% of the loan to value (sales price). Often times, the mortgages may be structured around conforming loan limits, as long as the total combined loan to value is 90%.
I’m pleased to announce that we now have second mortgages and home equity loans available in combination with a first mortgage at Mortgage Master Service Corporation. I see this being very useful with keeping loan amounts under conforming limits (especially once they’re scheduled to be reduced on October 1, 2011). Here’s some quick points on this program:
- maximum allowed total loan to value is 85% with a mid-credit score of 720 or higher for owner occupied.
- maximum allowed total loan to value is 70% with a mid-credit score of 700 – 719 for owner occupied.
- maximum allowed loan to value of 80% with a mid-credit score of 720 or higher for a second home.
- available for purchases or refinances.
- maximum allowed debt-to-income ratio of 45%.
- available as a HELOC (home equity line of credit) or fixed rates.
Should you consider using a first and second mortgage combo for your home financing? That’s up to you! What’s important is knowing and understanding what options are available to you so you can make an informed decision. If you are buying or refinancing a home located anywhere in Washington state, I’m happy to help you with your mortgage needs.