80/20, Conventional, ??? - Posted by Tom O'

Posted by Nate(DC) on July 11, 2001 at 15:16:23:

With your credit score you should be able to do this as an 80/10/10 with no PMI. If your lender doesn’t know how…find another one.


80/20, Conventional, ??? - Posted by Tom O’

Posted by Tom O’ on July 11, 2001 at 14:19:04:

Here is my situation…

I am in Mass. and My father is selling his house and moving out of state. The Market value (I checked comps) is $240,000. I would like to buy it from him (to live in) but I don’t have much to put down as a down payment. He has offered to sell it to me at $240,000 and gift me the $24,000 to use as a down payment (essentially selling the house to me for $216,000). Here is where the issues come in:

Under a conventional mortgage, don’t lenders want 5% seasoned funds from me for the purchase?

If I can qualify for the mortgage with no seasoned funds from me, the PMI is ~$100.- month. Can I get around these problems with an 80-10-10 mortgage? (Someone recently mentioned this type of mortgage to me, 80% 1st mortgage, 10% 2nd mortgage and 10% down, right?)

I have excellent credit (730) and I have the income to qualify for the PITI.

Any ideas would be great.


Re: 80/20, Conventional, ??? - Posted by jesse

Posted by jesse on July 13, 2001 at 22:25:23:

a 25% gift of equity will allow you under fannie mae guidlines to roll in closing costs. essentially making this a refi with little cash out of your pocket(credit report, appraisal). I am a broker in ny and have done 3 of these so far this year for clients, it is a rarely used not well known fannie guidline.
email me if you want any further info. You would probably qualify for several other programs with little or no cash because of your good credit.

Good Luck

Re: 80/20, Conventional, ??? - Posted by Nate(DC)

Posted by Nate(DC) on July 11, 2001 at 15:17:46:

Couple of other considerations:

  1. With a 730 score you may be able to qualify for 100% financing in one loan. No need for a 2nd trust, or for a gift from Dad.

  2. You could also go FHA, if the FHA loan limits in your area are high enough. That has a 3% downpayment and it can be from a gift (from Dad).

Good luck,