What credit score do you need for a 80/10/10 Loan?
680
To qualify for an 80/10/10 loan, you’ll need a 10% down payment; stable income and employment with tax records to prove it; and debt-to-income ratio no higher than 43%. You’ll likely also need a credit score of at least 680 to qualify for an 80/10/10 piggyback loan.
What would a 80 000 mortgage cost per month?
How much would the mortgage payment be on a $80K house? Assuming you have a 20% down payment ($16,000), your total mortgage on a $80,000 home would be $64,000. For a 30-year fixed mortgage with a 3.5% interest rate, you would be looking at a $287 monthly payment.
How do you calculate a 80/10/10 Loan?
With an 80-10-10 loan, you’re taking out two loans: One to cover 80% of the purchase price and another to cover 10%. With a traditional mortgage, you’re taking out one loan to pay the balance of the purchase price after your down payment.
How do I calculate my blended mortgage rate?
For example, if a loan of $375,000 is refinanced by a mortgage of $300,000 at 6.5% interest rate, and a mortgage of $75,000 at 7.75% interest rate received for the same period, the blended rate will be calculated as ($300,000 * 6.5%) + ($75,000 * 7.75%) / $375,000 = 6.75%.
What is a piggyback mortgage loan?
A “piggyback” second mortgage is a home equity loan or home equity line of credit (HELOC) that is made at the same time as your main mortgage. Its purpose is to allow borrowers with low down payment savings to borrow additional money in order to qualify for a main mortgage without paying for private mortgage insurance.
Is it hard to get a piggyback loan?
Piggyback mortgages often require a high credit score. You probably need a 680 score to qualify, but that will vary with each lender. Borrowers with a less-than-perfect credit score, an irregular income history or who are using a gift for the 10% down payment will probably need FHA.
What is an 80% conventional loan?
Low-down-payment conventional loans Because borrowers who meet this requirement only have to finance 80% of the home’s value, it’s often referred to as an “80/20 conventional loan.” But conventional loan down payment requirements have since become more flexible.
Can you still do an 80/20 loan?
Lenders sometimes put a limit on the total amount for the 20 percent loan, such as $100,000. Most lenders require that the 80/20 be used for your primary home, that is, the home you plan to live in. In some cases, the lender will offer only an 80/20 on a single-family house, though this restriction varies by lender.
What is blending a mortgage?
A blended mortgage is when you combine the mortgage rate from an existing mortgage with the mortgage rate from a new mortgage and blend them into a new rate that is somewhere in-between the two. You can get a blended mortgage when you want to access equity, obtain a lower mortgage rate or both.
What is a silent mortgage?
A silent second mortgage is a second mortgage placed on an asset (such as a home) for down payment funds that are not disclosed to the original lender on the first mortgage. The second mortgage is called “silent” because the borrower does not disclose its existence to the original mortgage lender.