Home Buying in Morgan Hill>Question Details

dyshira, Home Owner in San Jose, CA

Are 80-15-5 loans still available in California?

Asked by dyshira, San Jose, CA Fri Jun 15, 2012

We can't fo FHA because we can't refinance out of our FHA due to a really terrible appraisal, so we were planning on renting out our house. Again, since we had a bad appraisal we have no equity and can't get any sort of home equity loan or credit to pay for our next house. We need a larger house because my parents come to visit a lot and we barely have enough space for just our family.

We can get approx. 40k but for the house we want, we need another 15k which is just not doable for us right now. So my question is are 80 15 5, still available in california? Or do we have other options?

Help the community by answering this question:


80-15-5 and 80-10-10 programs are now becoming more common. Qualifying is pretty strict but if your income, credit, and debt ratios are o.k. this is a good strategy. Be aware the PMI is pretty heavy on both, but better on the 80-10-10.
Good luck,
1 vote Thank Flag Link Fri Jun 15, 2012
What PMI? 80/15/5 and 80/10/10 mortgages are expressly made so that there is NO PMI.
Flag Tue Nov 19, 2013

I highly recommend you call and talk with Dave Setti with Turnkey Mortgage. He'll run your scenario with you to see what your options are. You will have to qualify for the new mortgage based on the lending criteria of turning your current home into a rental. Lenders don't count 100% of the rent to off set your mortgage and some of them require a one year lease and canceled check from a renter prior to funding and closing on your next loan.

Having an honest discussion with the lender up front may save you money and potential heart ache later.


Have an amazing day.
Web Reference: http://www.terrivellios.com
0 votes Thank Flag Link Fri Jun 15, 2012
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