100% and 80/20 Loans

These loans are available for most all credit grades. This a great loan program for borrowers that have limited cash for a down payment or simply wish to not put any cash into the loan. 100% loans are primarily a Fannie Mae product. These types of loans do require mortgage insurance. The 80/20 loans are a combination of an 80% first lien and a 20% second lien.

The advantage:
No mortgage insurance.

The disadvantage:
The second lien interest rate is higher than the first lien. The monthly payments of both are very much the same.

Both 100% and 80/20 scenarios are available through portfolio lenders (Sub-prime). The interest rates are a bit higher but there is no mortgage insurance. This enables a person with marginal credit and limited cash to purchase a home. The are many variables in determining what scenario best fits the borrower.

Contact a loan officer