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80/20 piggy back loans

I am looking for a first mortgage with 70% LTV, with the seller providing the 30%. Are these loans readily available ? Probably slightly a jumbo, but could be conforming. Excellent credit. by John Gill from Richmond, Virginia. Dec 31st 2011 Reply


Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,908 contributions

John, generally speaking, 80/20 loans don't exist anymore (although you can find 80/10 financing). Anything with the seller holding a second mortgage (the type of loan you are asking for) doesn't exist anymore with any sort of traditional lender in today's market that I am aware of. That was a non-conforming sub-prime product of the past that quickly went away with the mortgage market meltdown.

Jan 1st 2012
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Blake Kleckner (BlakeK)
#390 ranked lender in California - 257 contributions

What does slightly a jumbo mean? Either it is or it isn't. If you're referring to a jumbo loan, meaning larger than a conforming, the loan would be for any amount over $417,000 as of 10/1/11. It is highly unlikely you will find a lender, other than for hard money which is very high interest, that will do a 30% 2nd.

Jan 1st 2012
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Thanks for the replies. To be clear, I am not looking for a second. I have that with the seller. I am looking for a first mortgage with 70% LTV. As to size of the loan, I am looking for $550k. If it makes any difference in the answer, then we can reduce the request to $417k. Also, we can make a 10% down payment, if we need to, but would rateher not.John

Jan 1st 2012
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NA NA (notapplicable)
#8 ranked lender in Virginia - 15 contributions

John,The max high balance conforming loan limit for the Richmond MSA is $535,900 for 2012. Here's the HUD loan limit lookup tool: https://entp.hud.gov/idapp/html/hicostlook.cfm. Conventional guidelines allow 90% max Loan-to-Value for high balance loans (fixed rate on a primary residence purchase), so you could possibly do 80% on a 1st mortgage at $535,900 and a seller held 2nd mortgage for 10%. The seller held 2nd would have to meet certain conventional requirements.Feel free to call or email me with any questions.Happy New Year!Jason CriglerCrown Mortgage, LLCCharlottesville, VA(434) 825-8730 celljason@crownmortgage.com

Jan 1st 2012
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Brian Allen (ballen)
#43 ranked lender in Maryland - 191 contributions

John, difficult to do a second without lender involment but there are other options for high loan amount loans and not subject to Fannie and Freddie contact me to learn more to see if you can structure the deal accordingly. I can be reached at ballen@accessnational.com or 888.354.3299.

Jan 2nd 2012
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Richard Woodward (RichardWoodward)
#40 ranked lender in Texas - 106 contributions

You are not going to find any traditional lenders that will allow this type of financing. Even hard money lenders want you to have a little equity in the property. As for Jumbo- forget about it. Check with your local lending professionals, I think you might be in a high cost area and could possibly qualify for a 3.5% down payment FHA mortgage. In metro Richmond VA the maximum loan limit is $535,900 for FHA.

Jan 2nd 2012
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Bert Carpenter (BertCarpenter)
#2 ranked lender in Arizona - 1,823 contributions

Unfortunately, because lenders lost so much with borrowers who had little or no down, in today's mortgage world, you are going to be required to come up with at least 10% of the purchase price. If you keep the First loan balance at conforming limits, there are a few lenders that will allow up to a 95% CLTV (Combined Loan to Value) But no one, except possibly family, will do what you are looking for.

Jan 2nd 2012
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