Is there a way around the escrow requirement without 20% down?
Is there a way to avoid having to escrow RE tax and insurance without putting 20% down. The way I am paid would make it much easier from a cash flow perspective to avoid having the funds escrowed. 20% or more of my compensation is paid as lump sum bonus and overtime. The timing of the bonus and overtime coincide with the due dates of tax bills.
From what I know, even on piggyback loans no one is doing escrow waivers less than 20% anymore. Can't hurt to check around though...
Yes, there is? You can split the loan: 1st mortgage 80%; 2nd Mortgage 15% down; 5% from you OR 80/10/10. Because your 1st mortgage is at or below 80%, you may waive escrow (typical .25% discount fee applies). You'll have 2 mortgages and no escrow. You'll also NOT have mortgage insurance....woohoo!! I'm not licensed in PA, so find a bank like ING, BOA or Wells Fargo to start. I'm sure you'll get a bunch more answers soon from local guys/gals. Expect another quarter discount point for a combined loan to value (CLTV) of 95% if you decide to only put 5% down (dependent on credit score too).
When I used to work for GMAC (ResCap) they allowed it up to 90% with sign off by a REGIONAL manager. I do believe those days have since gone and all lenders will now require escwors held with LTV exceeding 80%. Was there a need for you to hold those funds on your own? Or are you uncomfortable with the lender holding them? http://www.ronbeebe.com
Bandjrey,
Unfortunately l do not know of any way to avoid this, regardless of program (FHA, Conventional, USDA, VA).
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