The Times…They ARE a Changing


For the first time ever in my career, I had to contact a client to tell them that the Good Faith Estimate that I had provided him earlier today is no longer valid.   This is a person who was getting ready to buy a condo utilizing an 80/20 and stated income.  His mid credit score is above 750.

I received an email just after 7:00 p.m. tonight from Greenpoint Mortgage (more of an “alt-a” than a subprime lender) stating that all 80/20 mortgages must be funded by the end of this month.    Regardless of how high the credit score is or even if the loan is “full doc”, Greenpoint, along with many lenders, is pulling in the reigns tight.   

Just another warning to double check your preapprovals if you’re planning on buying zero down, stated income, interest only…even if you’re not considered subprime.


  1. Wow.
    I’m looking at the latest edition of the Scotsman Guide and Greenpoint is showing all kinds of other loan products like Option ARMs and 100% LTV products.

    This is going to be an interesting year.

  2. You wrote: “. . . stating that all 80/20 mortgages must be funded by the end of this month.”

    We are looking into soon buying a condo (our rental apartment is converting) and will need to go 80/20. Just starting to learn about mortgages (first time buyers) and real estate in general. Can you tell me what this means (that it must be “funded”)? Or direct me please to somewhere that would explain that? Thanks.

  3. Hi Newbie, This is regarding “Greenpoint Mortgage”. They’re a lender who many mortgage companies broker to. This may or may not impact you, depending on what type of 80/20 you’re considering. There are other lenders who are still providing them.
    This is significant because Greenpoint is not really a “subprime” lender (subprime is getting most of the bad press these days).
    80/20’s are getting tougher to qualify for. FHA is still a great option for min. down first time home buyers and so is LPMI 100% financing (one loan).
    This post is not meant to scare you–but you should really check with your mortgage planner as our guidelines are changing daily.

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