80/10/10 loans-do these exist anymore?

wino55 · March 2012

We are currently saving for a downpayment, and ideally would like to put 20% down. We are not willing to pay PMI, so 20% may be what it takes. I know banks used to give 80/10/10 loans and even 80/20 loans that allowed people to avoid PMI, but has anyone had any success with getting an 80/10/10 loan nowadays? We could pay off the second loan quickly and it would allow us to start looking in the next couple months and hopefully take advantage of increased inventory during the summer.

J&K10910 · March 2012

We did something similar, but we still had to pay PMI. I don't know if this changes anything, but a lot of PMI companies are now giving you the option of paying the PMI in a lump sum up front instead of included with your mortgage every month. Obviously there are pros and cons to doing it that way, but it is an option. For us, we ended up paying less PMI than we would have with it spread out, and buying before we had 20% saved made sense (we would have paid more in rent for a year than we're paying in mortgage AND PMI with a bigger, nicer, newer house).

cltk12 · March 2012

DH and I closed last week and did a 80/10/10. We built and went through the builders mortgage company and that was what they said most people were doing.

M&MGeraghty · March 2012

We close this week and did an 80/10/10. We put down a little more than 10% so our second loan is pretty small and we plan to pay that off as soon as possibly (it's a 15 year loan).

aokon · April 2012

Edited by moderator.

80/10/10 loans-do these exist anymore?

Re: 80/10/10 loans-do these exist anymore?

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