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100% financing for home purchases

D

DurocShark

Lifer
Holy crap. Ameriquest just started doing 80/20 loans for 100% purchase financing for people with 600 credit scores.

Sweet!!!!
 
Originally posted by: Beau
What interest rate?
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With a 600? 45%. LoL!

The point is to get INTO a house for stupid people like me who jacked up their credit. My score is actually under 600 but that's a reachable goal for me.

Too bad I can't take loans from my own company. LoL!
 
Good god. 45%?

I had a 650 fico when I got my house $200k with $10k down @ 6.5% and that still felt like I was getting raped. (through homecomings)
 
Originally posted by: pio!pio!
Does that mean twice the loan fees?
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Of course.

This isn't for people with money in the bank or good credit. This is to GET a family into a house, often with the same or less per month than rent.
 
Originally posted by: iamwiz82
Originally posted by: sygyzy
What does 80/20 mean?
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A loan for 80% of the house with a down payment paid by another loan that is 20% of the home's value, meaning no PMI.
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What the hell is PMI?

As for the loan, that's awesome. My score is mid-600's, and a deposit is not ideal for me. So what would be a general interest rate for one of these loans with a score in the 600's? This is something I would like to jump in within the next couple of years.

EDIT: Also, how does the OP know about this?
 
Originally posted by: blurredvision
Originally posted by: iamwiz82
Originally posted by: sygyzy
What does 80/20 mean?
Click to expand...

A loan for 80% of the house with a down payment paid by another loan that is 20% of the home's value, meaning no PMI.
Click to expand...
What the hell is PMI?

As for the loan, that's awesome. My score is mid-600's, and a deposit is not ideal for me. So what would be a general interest rate for one of these loans with a score in the 600's? This is something I would like to jump in within the next couple of years.

EDIT: Also, how does the OP know about this?
Click to expand...

PMI = Private mortgage insurance. My understanding is that you pay extra every month until you hit 20% equity in the house, but the extra you pay does not count toward your mortgage, it is just an extra fee.

The OP knows about this because he works for Ameriquest it seems.
 
Originally posted by: Beau
Good god. 45%?

I had a 650 fico when I got my house $200k with $10k down @ 6.5% and that still felt like I was getting raped. (through homecomings)
Click to expand...

He was joking about the 45%.
 
Good to know I have a high credit score = over 750
Good to know I have a decent job
Good to know interest rate is low
Bad to know I live in California where housing price will give you a mansion in other states... 🙁
 
The only downside is that with an 80/20 loan or a 100% loan you will pay a higher interest rate (slightly, except on the 20% part--it is quite a bit higher). Up side is no PMI so you will be able to deduct more of your mortgage payments off on taxes. (PMI is not deductible, if I'm correct).

I just closed on a house on the 30th of last month. Neither my wife or myself have excellent credit. Both of ours are in the mid 600's. We got an FHA loan, put down only 3% and got a 30 year fixed rate of 5.375%. I thought that was great!!!
 
The thing I don't like about an 80/20 or 90/10 is the smaller loan is always an ARM. Never can tell where those interest rates are going to go.
 
Originally posted by: mugs
Originally posted by: Beau
Good god. 45%?

I had a 650 fico when I got my house $200k with $10k down @ 6.5% and that still felt like I was getting raped. (through homecomings)
Click to expand...

He was joking about the 45%.
Click to expand...



ROFL......that would be one fast foreclosure!
 
Originally posted by: sygyzy
Why don't they call it a 100/0 loan and just put it into one? Why 80/20?
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Because 100% loans on their own are considered high risk and you have to get mortgage insurance for that

so its split up to two liens, first lien pays 80% while the second lien pays 20%
 
How exactly do those 80/20s work. I'm looking into getting a house in the near future somewhere between 250-350, so at 300k the main loan would be a regular 30 year valued at 240k while the second loan would be 60k. What would the terms of the second loan be? I'd expect a high interest rate on it, but how about the length?
 
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