Home Loan for low scores?

[Anonymous]

The home buyer takes out two loans -- the first for 80 percent of the purchase price, and the second for 20 percent of the home's price.

It allows people to buy without a down payment, or for those people who would prefer not to touch their savings to get into a house

http://www.bankrate.com/brm/news/mortgages/20031113a1.asp

Message Edited by Duny on 07-28-2007 11:41 PM

[Anonymous]

myhearts-

80/20 is two loans= 100%, no money down. Also used as a way to avoid PMI (Private Mortgage insurance) that you'd pay on a 100% loan

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myhearts07 wrote:

Does 80/20 mean 80% financed and 20% down payment?  If not, what does that figure mean?  I have read it a few times on the forum and was curious to know.

Thanks

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[Anonymous]

Assuming a clean rental and/or mortgage pay history for 12 months and no major (no more than a couple 30 day lates) in the last year, and you should be able to get an FHA loan with 2.25% down, FHA rates are at or around 7%ish.  Maybe a tad better.

[Anonymous]

I have a 610 middle score and was pre-approved with Coldwell Banker Finance for 7.25%.  I liked them a lot but we decided to go with new construction so we are using the builders lender instead because there will be no closing costs.  My score wasn't high enough to do a first and second, so I have to pay PMI   If I can get my score up 10 points, the PMI will be a lot lower...thankfully, I have some time before they lock in the rate.

Good luck!!

[Anonymous]

Hi, could you please tell me the name of this program?

Thanks

[Anonymous]

you are lucky, they (first franklin) just revised their guidelines and do not lend 100 CLTV  anymore. everyday the sub prim elenders are revising their guidelines to be much more conservative in their lending.

Message Edited by danky1234 on 08-04-2007 03:50 AM