Ah, I remember the days when 100%, 80/20, and 80-10-10 financing existed. Even though I personally benefited, and I know many people who benefited from these options, I think they failed us as a whole.
From the late 1990's into the mid 2000's the market was HOT, and if you had a pulse you could basically get a mortgage loan. 100% and 80/20 were given away like lolly pops at a trip to the dentist office, and boy oh boy do I remember the "stated income" loans.
After things fell apart in 2006, these financing options basically split like a banana. Before we knew it, we were bound to VA loans and FHA loans as our "lowest down payment" options. Soon the FHA loan went from 3% down to 3.5% down. There was really no way to escape private mortgage insurance (PMI) in any loan programs, except VA.
Last week, I sold a house to a buyer in Silver Spring. I am proud to say that my client got an 80-10-10 loan. I must say, the 80-10-10 I always saw as a solid loan. Myself and the listing Realtor were talking at the settlement table about it, and we both agreed that it pretty much is a win/win situation for the banks and consumers.
There is only one bank I know of in this area that is doing the 80-10-10 plan, and I hope the other banks catch on soon and get us back on track of avoiding the painful and dreadful PMI.
Start your search online at my website: www.silverspringexpert.com
Feel free to call me or e-mail me with any questions. 240.882.8512 or stanley@lnf.com
Best regards - Stan Barsch
Comments(0)