Financing in 60618>Question Details

Terry, Home Buyer in Chicago, IL

Are 80-10-10 and 80-15-5 piggyback loans still commonly available?

Asked by Terry, Chicago, IL Sun Jan 4, 2009

I've heard various sources (TV, financial blogs) claiming that a lot of the creative mortgage financing avenues have dried up due to the high-risk mortgage industry collapse, and the poor state of the economy in general. So, I was wondering if 80-10-10 and 80-15-5 piggyback loans are still commonly available from lenders working in the Chicagoland area. It's just a general question...I'm not looking to commit to a lender for several months.

My wife and I have excellent credit (one of us near 750, the other well over 800), and we have a high income relative to the home price range we're considering (i.e. we're not even close to the lending guidelines for income percentages). By the time we buy, we'll also be relatively debt free. We have excellent employment histories, both being at our current positions over 10 years. The one place we're falling short in terms of strong qualifications would be the down payment, so we'll be looking at either piggyback options or FHA.

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Wayne Beals’ answer
Agreed with Chris,

Speak with a good mortgage banker. What is available depends a lot on your credit, income, assets, and what you're trying to buy.

Professional Mortgage Partners has done some great work for my clients and I happily recommend them as well.
0 votes Thank Flag Link Mon Jan 5, 2009
80/10/10 loans are still available but harder to find 80/15/5 loans (lenders want buyers to have more skin in the game now). The lenders that offer these are few and their standards are tighter. The other route if you don't have 10% for down payment is FHA loan (max loan amount of $417,000 and 3% down). Call me anytime, I'd be glad to help.
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0 votes Thank Flag Link Sun Jan 4, 2009
90% loan with mortgage insurance is less expensive than FHA. I have done 80/10 loans in the past. Let me know if I might be of help to you. Joanna 773-327-3580.
0 votes Thank Flag Link Thu Jan 31, 2013
These piggyback loans are rare. However with your qualifications, there are other options, is one site. Homes there can be purchased for $100 down. is another with only a 3 percent down payment requirement.

Another option is a USDA loan. These loans have a no down payment option and can also be used for new construction as well as existing homes. Give me a call if you would like to discuss. Of course, there is never a fee to chit chat.

Sean Cochran
Quality Mortgage Lending
630-330-2229 cell
630-470-6830 office
0 votes Thank Flag Link Wed Jan 30, 2013
Dear Terry,

I'd suggest contacting Dan Larkin with Professional Mortgage Partners when you are ready to investigate lenders to work with. He has been in the business for a number of years, and he is by far the most consistently great lender that I've worked with over 5+ years of being a real estate agent and 2 years as a residential closer for a title company. Dan can be reached at 312-952-8068 (cell) or 847-277-1781 (office).

Dan and I have no formal arrangements that benefit me when I refer him to clients other than he does not upset my clients nor mess up their deals (as almost every other lender that I have worked with has done at one time or another).

Good luck to you both, but it sounds like with your credit profile you should have no worries.

Christopher Thomas
Broker Associate, Sudler Sotheby's International Realty
773-418-0640 (cell)
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0 votes Thank Flag Link Sun Jan 4, 2009
Don't believe marty he has a lender for everything. Heputs this standard post everywhere. He is playing the numbers game you do not want a mortgage broker like that.
0 votes Thank Flag Link Sun Jan 4, 2009
In Illinois, the best financing I can find for your Jumbo scenario would be 90% and a maximum loan amount of $800,000. A greater loan amount would entail a lower Loan-to-Value and more money down.

If you would like to prequalify, please feel free to contact me.

Luke Allison
Flagstar Bank
0 votes Thank Flag Link Sun Jan 4, 2009
Terry these loans dont exist any more as they once did. Your best option is to contact a local and trusted mortgage broker to get prequailified, they will be able to tell you what programs are available. They are everchanging... good luck
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0 votes Thank Flag Link Sun Jan 4, 2009
You are correct the 100% finance and stated income loans are thing of past. Contact a mortgage broker determine all options made available to you.
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0 votes Thank Flag Link Sun Jan 4, 2009
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