80 – 10 – 10’s now are back… at Mortgage Master Service Corporation!

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%.

Here are some of the program requirements:

• total combined loan to value limited to 90%.
• first mortgage limited to conforming loan limits (including conforming high balance).
• credit scores must be 740 or higher.
• single-family detached dwellings only.
• primary residence – owner occupied only.
• maximum debt to income ratio is 43%.
• purchase transactions only.

This is just another option for you to consider if you are buying a home with 10% down payment. I recommend comparing this to a scenario with private mortgage insurance to see if this fits your financial scenario.

If you are interested in buying a home located any where in Washington state, where I am licensed, please contact me – I am happy to help you!