Are there still 80/15/5 loans in 2015?

Question

Here in Jersey most nice homes in good neighborhoods start around $400k.  Money is just so cheap right now and the market is treating me so well I'd rather not dump all my cash into a down payment.  $20k down on a nice house and $2700 a month with taxes is no problem, we currently rent for $2400 and this move would be reducing commuter costs by about $300 a month.  So I'm wondering if a first time home buyer, with excellent credit, almost no debt and a household income between $120-$140k could get an 80/15/5 or am I stuck with the 80/10/10?

Eric P. · Answer

It looks like I might be able to roll closing costs into my mortgage if I can't get the seller to cover most of them.  So I don't think I need quite as much money up front as I thought.  Now I just need to figure out how much cash reserves I'm expected to have.  Its amazing the amount of Cash needed upfront to purchase a home here in Jersey.  On a $300k NJ starter home you're talking $30k down, $10k cash reserves and probably $6k closing..   And thats just 10% down.  No wonder why I've rented for so long.

Robert Sepulveda · Answer

yes, 80/10/10 exists now for your area. There's a specific product out there with a 1st and a heloc, with 10% down of your own funds. This way you eliminate PMI as you mentioned and reduce your downpayment. You'll still have to impound your taxes and insurance, however. But you'll save a ton of MI on a $400,000 home.

There are no 80/15/5 programs that I'm aware of. Maybe more will chime in.

Eric P. · Answer

Then I'm stuck paying PMI.. Most of what I've seen the FHA loans are NOT the way to go if you can avoid them.

David H. · Answer

why don't you do FHA and 3% down?  80/17/3?