Florida 80-10-10 Piggyback Second Mortgage Financing Loan
What is an 80-10-10 Piggyback Second Mortgage Loan and how does it work?
An 80-10-10 Piggyback Second Mortgage Loan allows customers to make home ownership a reality with as little as 10% down. The 80 10 10 Piggyback Second Mortgage Loan consists of a first mortgage for 80% or more of your home’s value or sales price with a variable rate second mortgage as a piggyback loan of 10%.
What are the benefits of doing an 80-10-10 Piggyback Second Mortgage Loan?
- It’s a great way to avoid paying mortgage insurance (PMI).
- Great option to avoid a Jumbo Mortgage and the strict underwriting and reserve requirements.
- We use the second mortgage to get primary residence & second home condo loans approved and for single-family residential mortgage loans when you don’t meet the jumbo credit score or reserves requirements.
Here are the details of the interest only 2nd mortgage loan
- A 30-year mortgage with no prepayment penalties.
- Interest only payments for first 10 years and then it amortized over a 20-year principal and interest payment schedule.
- It is an adjustable rate mortgage that is based on the current prime interest rate plus .99% to 1.99% depending on your loan to value.
- 700 Minimum credit score is required.
- Max debt to income ratios is 38% for housing expense and 45% of all expenses.
Here are the details of the 30 year fixed rate 2nd Mortgage Loan
- 30 year fixed rate mortgage with no prepayment penalties.
- 720 credit score required for 10% down payment.
- 680 credit score required for 15% down payment.
- No Gift funds allowed.
- First-time homebuyers need 24 months of verified rental history.
- No mortgage late payments in the last 24 months.
- Bankruptcy Chapter 7, 4 years from discharge date and Chapter 13, 2 years from discharge date.
- No foreclosures in the last 7 years.
- Max debt to income ratios is 35% for all expenses.
We only offer second mortgages for purchase and refinance transactions and not as a line of credit for current homeowners.