10% Down with Pledged Assets
Here in California, I come across a lot of home financing scenarios, especially on the jumbo side, where the buyer would prefer to make a 10% down payment instead of a 20% down payment. And what we commonly see is that as the price range of the home increases, so too does the difficulty of only contributing 10% to the purchase transaction. What can these buyers do? We have three highly effective solutions:
- 80/10/10, or "piggyback" financing. This works well for home prices in the range of $825,000 to $1,100,000. Since a second mortgage, or 80-10-10 is fairly straightforward and the most easily understood, just e-mail me if you'd like more information on how this would work for you.
- REX Homebuyer down payment funding. REX, covered in this video here, will permit a 10% down payment up to a purchase price of nearly $1,600,000. REX can also be used up to a purchase price of $2,000,000 with as little as 12.5% down. The big benefit of REX? No monthly payments. It's an equity investment, paid back when you sell the home.
- Pledged assets. A pledged asset structure will permit a 10% down payment up to a purchase of $5,500,000. Perhaps the best thing about our program is that it doesn't require that you move all your money to another institution. Love your financial advisor? You can keep him/her and still pledge the majority of your down payment. The other main points are covered in this video below:
If you are a homebuyer in California and need help with a 10% down payment home loan, also known as an 80-10-10, get in touch today and we'll figure out the best program to meet your needs. And if you're a real estate professional who has a client looking to buy a home in the luxury market, but who will need to leverage the financing beyond a 20% down payment, let's talk about what programs might offer the best fit and present the strongest offer to the seller. I can be reached at the contacts below.
Rob Spinosa
Mortgage Loan Originator
NMLS: 22343 CalBRE: 01297944
Cell: 415-367-5959 Fax: 415-366-1590
rspinosa@rpm-mtg.com www.rpm-mtg.com/rspinosa
1058 Redwood Highway, Frontage Road, Mill Valley, CA 94941
RPM Mortgage, Inc - BRE# 01818035 – NMLS# 9472 - CA Bureau of Real Estate, Real Estate Corporation License. Equal Housing Lender.
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