Home Buying in 91604>Question Details

Mr. Homebuyer, Home Buyer in Studio City, CA

Who is offering 80-10-10 loans in Southern California with total limit greater than $750k?

Asked by Mr. Homebuyer, Studio City, CA Fri Jan 25, 2013

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Robert Spinosa’s answer
Mr. Homebuyer,

If you reach the end of this rope and find no options, we have a single loan solution that will go to $875K at 90% LTV. Yes, there will be PMI. No, it's not perfect.

If you can take it out of the realm of the emotional ("all PMI is BAD"), then the real numbers will tell if this solution makes sense or not. If you need help in that regard, I am available any time.

Thank you,

Rob Spinosa
RPM Mortgage
0 votes Thank Flag Link Fri Jan 25, 2013
I just wanted to update the thread below as of April, 2016. When it comes to 10% down financing, here is an indication of what we're able to offer:

80/10/10: Available up to a purchase price of almost $1.7MM. First mortgage can be fixed rate or ARM (7/1 or 10/1, most commonly) and the second mortgage is usually a home equity line of credit (HELOC).

Single loan, no PMI: We have a 30-year fixed rate loan that will go to a purchase price of just over $2.2MM with a 10% down payment. The loan has no PMI.

REX Homebuyer: REX works a bit differently and is not a loan. Instead, the REX Homebuyer funds will match your 10% down payment. When you end the agreement by way of refinance or sale you pay REX back with a percentage of the value change of the home. REX has the greatest reach with just 10% down, allowing a buyer to get to a purchase price of $3.125MM.

Income, asset and credit requirements vary for all of the options above, so it's important to weigh each to determine the best fit for your scenario. If I can answer any questions I am happy to help.
0 votes Thank Flag Link Sat Apr 16, 2016
As of June, 2015, we have a number of very good options that will revise what has been written below. A buyer in California can get to a purchase price of over $1.4MM with 10% down and an "80/10/10" or "piggyback" loan structure.

Using the REX Homebuyer program, that purchase price limit goes to nearly $1.6MM. Still with 10% down.

With a slightly larger down payment (12.5%), the buyer can get to a purchase price of $2MM and with 15% down, the purchase price can exceed $2MM.

Call with any questions or if any details are necessary. Like all things mortgage lending, there are pros and cons to every approach and I'm happy to outline these as necessary.

Thank you!

Rob Spinosa
0 votes Thank Flag Link Wed Jun 3, 2015
Does this only come with Rex for 20% total ? How long does it take to close ?
Flag Sat Jun 6, 2015
Sounds great. I will definitely keep this in mind. Thanks!
0 votes Thank Flag Link Wed May 29, 2013
No....I do not have an investor that will go there
0 votes Thank Flag Link Fri Jan 25, 2013
Re: the 2nd. As a broker, wouldn't you be able to find someone to get behind the first?
0 votes Thank Flag Link Fri Jan 25, 2013
Now, and I do not know if that will help; We offer for combined loan to value over S750,000 (and up to 1.375 Mil) a 80% first and are OK with a 10% second lien behind our first...(I just do not who will do that loan...Private Money, Seller Carry Back, Employer 2nd..etc. But regardless of whether the lender of the 2nd lien is a private-party individual or an institution, a copy of the note will be required and would have to meet certain parameters...Cheers
0 votes Thank Flag Link Fri Jan 25, 2013
if your combined first and 2nd is greater than 750K, we are limited to 85%. You are correct. I misread "greater" ...
0 votes Thank Flag Link Fri Jan 25, 2013

The answer to my initial question is NO. You presented me with a 80-15-5 option for a combined lien over $750k, not a 80-10-10. Please correct me if I am wrong.
0 votes Thank Flag Link Fri Jan 25, 2013
Costs for simultaneous 2nds are very minimal ; Flood $7.00; Credit $3.15; Appraisal Scoring $24.00; Appraisal desk review about $185

No Title Insurance required for Simultaneous HELOCs with line of $250,000 or less.

Primary Borrower (most income) must have a Mid Score of at least 700.
If combined liens > $750K mid score must be 720.

Max Ratios of 38.00/45.00 Absolutely firm on BOTH RATIOS

0 votes Thank Flag Link Fri Jan 25, 2013

Max 89.99% CLTV -Max combined liens of $750,000
For combined liens>$750K - 85.00% CLTV to $1 Mil combined liens.
Same pricing for Purchase, R/T Refi or Cash Out. Condo refi max 85%

80.00%CLTV or below Prime + 1.49 (Prime @3.25%) = 4.74%
80.01% CLTV to 89.99% Prime + 1.99 (Prime@3.25%) = 5.24%

OWNER OCCUPIED ONLY– no second homes; non owner or blended ratio
Single family homes/condos and O/O duplexes OK. No triplexes or fourplexes.
First cannot be an Interest-Only loan -10% HELOCs will only stands behind fixed rate programs and full amortized 5/1, 7/1 and 10/1 ARM programs

HELOC Terms-10 year I/O draw period; 20 year repay period;
$50 annual maintenance fee deducted from HELOC with first statement.
No min credit advance or min balance required. Early Term. Fee of $475.00 if line is cancelled < 3 years.
0 votes Thank Flag Link Fri Jan 25, 2013
So the answer is NO. You offer what everyone else is offering - a combined lien of over $750k is 80-15-5 NOT 80-10-10.
Flag Fri Jan 25, 2013
I only know of max combination of $750k on an 80/10/10.

Those seconds are very skiddish. I do expect that they will ease up, but at the moment. Not available past $750k max combo.

Ratios do need to be 38/45 for that program, as well.
0 votes Thank Flag Link Fri Jan 25, 2013
0 votes Thank Flag Link Fri Jan 25, 2013
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