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Can I get a conventional loan with 10% down?

Hi,

My lender told me I can't get conventional loan with 10% down if the loan amount is more than 417K.  The only option I have is to go with FHA loan, which I will be stuck with 5 years MIP.  I am looking to buy this home at listed price 690K, and I only have 10% down, FICO 800+, high income.  Anyone know if I have other options by not doing FHA loan?

Thanks
  • August 02 2011 - US
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Answers (9)

Yes you can. Whomever your lender is is mistaken. Even though a lot of the larger lenders and banks cannot offer them we actually have several options for 10% above $417K. The best interest rates and payments though come from our 80/10/10 program. This allows a buyer to take out a 80% 1st mortgage, a 10% 2nd mortgage while placing just 10% down. And of course by structuring the financing this way you will avoid the need for mortgage insurance.

I hope this was helpful. Please contact me if you have any further questions or wish to see if you can qualify. Best of luck!
  • April 06 2014
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9/31 is the deliver date, not the last day to close for the temporary high balance limits. Your lender will have a cutoff date that is a week or  more before the end of September.

The MI companies have been a bit hinky about insuring on the temp limits and some wont insure above $625k.

If you want the conventional  5/1 ARM with 10% down you'll need to find a Freddie Mac lender; Fannie Mae requires 25% down on the ARMs.

  • August 06 2011
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Fannie Mae guideline for high balance ($417,001 to $729,750) fixed rate loans is 90%, and 75% for ARMs.
  • August 06 2011
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I am in Santa Clara, CA.  I am looking for 5/1 ARM to get low rate, NO FHA.  What is rate going to be without PMI?  House is 690K single family home, 10% down if close after 9/31 or can I do 5% down before 9/31?

thanks
  • August 02 2011
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Explore the option of 2 loans, First lien 417k conventional Rates and 2nd lien little higher rate but no PMI
  • August 02 2011
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That is incorrect and after Sept 30th, that is really going to be wrong.  Assuming you are in a high balance area where the loan limit is $729k, after Sept 30 the most that limit is going to be is $625,500.  You will need to close by that time frame in order to take advantage of the higher limit.  In the meantime yes you can get a conventional loan with 10% down at that amount.
  • August 02 2011
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If you just want conventional financing then a portfolio lender may work. If you want conforming then you probably won't find it as I don't think you can get conforming to 90% over $625,500.
  • August 02 2011
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There are lenders that will finance up to 90% with no MI.  These loans are non-conforming loans and are available through some of the larger banks.  The loan types run from short term ARMs to fixed rate loans.  What state are you looking to buy? 
  • August 02 2011
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You didn't mention what state the property is in. If it's in California I can help you.

Happpy funding, Rudi

  • August 02 2011
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