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80/20 or 100% ARM loans?

We are changing jobs and will be moving half way across the U.S.  We are trying to purchase a home without being contingent upon the sale of our existing home.  We then will use the proceeds of the sale of our current home to put into the mortgage somehow.  So, is there an option to do an 80/20 primary secondary (the proceeds of our sale should about cover the secondary)?  Or, are there any 100% ARMs out there that I could get then refi to conventional upon the sale of our home?
  • August 22 2010 - Manteo
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Answers (5)

We will (with qualifying income, assets, and equity) offer an 80% 1st mortgage on your new home, and the remaining percentage secured by your existing home. 
  • August 22 2010
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Whenever you pay down the mortgage 10% or more, the mortgage must be recast. This is a federal regulation.

In what world?????

Please link where this is in the US Code.


In New York there is no penalty if you pay down the mortgage in the first year

nor is there a penalty if you do so in all the other states or territories.
  • August 22 2010
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Unless the property qualifies for US rural loan or you are a vet, there are no 100% loans.
The best you can do is FHA at 96.5%. The downpayment can be a gift from a relative or a loan against your 401K. In New York there is no penalty if you pay down the mortgage in the first year. Whenever you pay down the mortgage 10% or more, the mortgage must be recast. This is a federal regulation. Recast means the lender (or servicer) must recalulate what you should pay per month based on the years left on the mortgage, amount left on the mortgage and interest rate. Since servicers don't always do what they are required to do, I suggest if you make a large payment follow up with the servicer.
  • August 22 2010
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here in st. louis we have an MHDC loan that is as close to 100% as it gets, but you have to qualify.  This is paired with FHA loans
  • August 22 2010
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Unfortanately due to the high level of defaults, most bankks have eliminated this program. Your best bet is to meet with a mortgage broker or bank that operates in both states, the one you are in and where you are going. They can prequailify you and let you know if there are any programs that meet your needs given your financicals and credit score.
  • August 22 2010
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