Financing in Brooklyn>Question Details

Rhayward, Home Buyer in Brooklyn, NY

What is an 80/20 mortgage and is it a good idea?

Asked by Rhayward, Brooklyn, NY Mon Feb 25, 2013

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Leonard Murphy’s answer
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Hi Rhayward. Actually 80/20 loans do not exist anymore. They use to be loans with 100% financing where you would get a first mortgage for 80 % and then get a second mortgage (home equity loan or line of credit) for 20% so you would not have to put any money down. In today's financing environment they just are not available. Madeline made a great point about looking into FHA financing. This will allow you to put down as little as 3.5% down.

If you have any finacning questions please feel free to give me a call at 718-780-9110 or email me at leonard.murphy@wellsfargo.com.
2 votes Thank Flag Link Mon Feb 25, 2013
I didn't know that either, thank you.
Flag Wed Feb 27, 2013
Hi Rhayward: definitely a good idea, if you have the cash. If not you have to apply for an FHA mortgage. You should discuss this with a mortgage banker.

80/20 - is a normal conventional mortgage. which means you need a 20% down payment and the
bank lends you 80% of the appraised value of the property. Keep in mind depending upon the property you are trying to purchase, it may or may not qualify for an FHA mortgage.
if you have any other questions please feel free to contact me.
madelinepadovano@fillmore.com
1 vote Thank Flag Link Mon Feb 25, 2013
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