We will help you locate Nationwide lenders that provide piggyback loans with 100% home financing programs for first time homebuyers with good or bad credit. Consider 80-20 loans, piggyback mortgage combo loan programs as well.
There are many types of purchase money loans that require no mortgage insurance, but sometimes you have to work with creative mortgage lenders who understand your needs and the current financing rules.
Explore our lenders diverse array of fixed-rate home purchase loan programs. The 80-20 home purchase option combines an 80% first mortgage with a 20% second mortgage, streamlining the process and eliminating the need for a separate down payment.
100% Home Financing with Piggy Back Loans
Overcome the obstacle of savings when it comes to realizing your dream home purchase. Discover the advantages of 100% Home Mortgage Loans.
Choose from our selection of 30 or 40-year fixed-rate mortgages, guaranteeing a stable interest rate for the entire duration of the loan. “Zero Down Mortgage Loans” have gained immense popularity among first-time homebuyers in the past year, offering the benefit of 100% financing without the requirement for a down payment.
With BD Nationwide, you can also explore options for home equity, second mortgages, and refinance loans, all available with fixed or adjustable interest rates.
$400,000 Home Purchase – 80-20 Payment Example:
$320,000 30 Year Fixed First Mortgage at 6%
360 Monthly Payments at $ 1,918.56
$80,000 30 Year Fixed Second Mortgage at 8%
360 Monthly Payments at $ 587.01
With the 80-20 fixed rate purchase mortgage, you don’t have to come out of pocket for the 20% down payment that most traditional purchase loans require. In addition, you will benefit from a low rate and low payment that is stretched out over 30 or 40 years. Top loan experts believe that it is important for borrowers to be confident when taking out piggyback loans against your home.
What Is the 80/20 Rule for Mortgages?
The real estate 80/20 Rule pertains to the Loan-To-Value (LTV) ratio, which is a crucial component in the Risk Management of all lending underwriters. The initial LTV ratio of a mortgage loan signifies the connection between the home buyer’s down payment and the property’s value (20% down payment equals an 80% LTV ratio). Learn more about 100% Financing and Purchase Money Second Mortgages.
Finance Tips and Loan Advice
Benefits:
No Money Down
Lower rate for 30 or 40 years
No Private Mortgage Insurance
Concerns:
Monthly payments can be costly with no money down
Second mortgage rate is quite a bit higher than 1st rates
Update: Since the rebound in the housing market, 80 20 mortgages or “piggyback loans” are now limited to a 90% loan-to-value ratio. Consequently, a down payment of 10% is required, deviating from the 80-20 loan structure prevalent during the market bubble.
There are still 100% loans but the combo mortgage options have migrated back to requiring a down-payment.
