Can I get a mortgage with 10% down? The answer is YES, you can get a mortgage with 10% down. The best option for this situation is what is called an 80/10/10. This is comprised of two separate mortgages allowing the borrower to go up to 90% financing without mortgage insurance!
The first mortgage is structured to be 80% of the sales price and is a standard conventional Fannie Mae / Freddie Mac mortgage product at current market rates. The second mortgage that my bank offers can accommodate up to 90% financing on the purchase of a home. The second mortgage is a fixed rate product and has no pre-payment penalty.
|
|
In the 80/10/10 example the homebuyer puts down 10% of their own money, followed by a First Trust at 80%, and a second mortgage at 10%. Just don't forget about closing costs. In the Maryland / DC / Virginia area closing costs and pre-paids are about 3-4% of the sales price of the home. In today's housing market it is common for the buyer to ask for a seller credit towards closing costs. Mortgages with 10% down, 80/10/10s, and even 80/20s with no money down used to be very common. However, in the post housing-bubble lending environment very few, if any other lenders are still offering mortgage with 90% financing and no mortgage insurance. |
Sample calculation:
Sales Price: $600,000
Downpayment: $60,000
First Mortgage: $480,000
Second Mortgage: $60,000
My community bank is continually creating products to serve our local community and this is just another reason why it is great to work with my bank. If you or your buyers have questions about an 80/10/10 or a mortgage with only 10% down, please don't hesitate to contact me today 301-585-7283.
Nick Pakulla / Loan Officer / NMLS# 728211 / First Place Bank Mortgage Lender / 15400 Calhoun Drive, Rockville MD 20855 / 301.585.7283 / http://www.nickhomeloan.com
Click Here to go to my Bank Website 
Call Me Direct: 301.585.RATE (7283)
