Good question posed by 1samtheman in Zillow Advice:
Do Lenders Still Do 80% Loans With Another 10% Loan if I Put 10% Down?
As we all know, times have changed in the mortgage world on the types of loans you can get. A couple of confirmed lenders from Zillow Mortgage Marketplace have chimed in, but we need to hear from more lenders on what is happening with 80/10/10 loans.
Yes, lenders do 80/10/10 loans, according to Fidelity National Title of Maricopa County – one of Arizona’s largest title companies.
I would like to put my 2 cents worth in here.
Even if you can find a lender willing to do a 80/10 loan with you supplying a 10% down payment yourself, this may not be a good idea unless the real estate market you’re buying a home in is on the upswing.
In some markets property values are still declining. Proceed with caution.
Consider using some great mortgage calculators I link below for you before taking this plunge.
Regards,
Jeffrey Ragan
Loan Consultant
I’d be curious to hear from “one of the largest title companies in AZ” exactly WHICH lenders are funding 90% second lien position loans. It’s public record so that shouldn’t be too hard.
NB- You can find that out by running a Dataquick search, isolating purchase transactions from the past six months, and searching for simultaneous 2nd liens. Be certain to make sure that the down payment is less than or equal to the second lien amount so that we can know that it was a 90/10/10
Absent that report, my opinion, shared widely by most professionals in our industry, is that the 90% CLTV market is dead.
Thanks for the good info…very good blog site.
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