80/20 Loan

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80% first mortgage with a 20% second mortgage. Interest rate on the second mortgage is higher than interest rate on the first, but even with that it is usually cheaper to have the 20% second mortgage than to have a 100% loan with PMI. 80/20 requires better credit scores than a traditional mortgage.

How low on the Credit Score do Lenders go 80/20?

Full Documentation = 2 Years Employment as W2 Employee or 12 months Bank Statements show suffient deposits if your 1099. Lenders will traditionally go to a FICO score of 580. Exceptions are to 560 but very few and the interest rates in the double digits. One major bank will go to 525 but you have to fit a fine criteria that is bascially hard to get to.

Stated= 1099 or cash wage earner will usually stop at a FICO of 620. Buttt some lenders will go lower. Problem again is you will run into the double digits on interest rates.

Hope some of this helps.

They do have no PMI mortgage as well. But usually again the interest rates are not as good as the 80/20 blends.

Good Luck