piggyback: How to Rock a 10% Down Payment!!!
- 07/14/22 12:17 PM
How to Rock a 10% Down Payment!!!
Why go home to your grungy apartment when you can buy your first home instead? Oh, what's that? Haven't saved the full 20% down payment? Live in a part of the country where home prices and loan sizes easily outpace the capacity of conforming, FHA and even VA loans?
Let's learn how to rock the best of the 10% down jumbo mortgage options, some without PMI, and jam on why with a changing real estate market, you may be in luck with half the down payment you thought it might otherwise take.
Jeremy's spoken,
Rob Spinosa
SVP of Mortgage … (3 comments)
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piggyback: 10% Down Payment Mortgage
- 04/05/20 08:39 AM
10% Down Payment Mortgage
But I don’t get it. 2020 started just like the many of the years that preceded it. Sure, there was a seasonal slowdown in home buying activity as we got through 2019’s holiday season and got the new year underway, but with interest rates at historic lows, a strong seller’s market in the San Francisco Bay Area and lots of buyer competition for any desirable home that came on the market, it looked like deja vu all over again for anybody looking to purchase a home. In other words, here we go again with having to come up … (23 comments)
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piggyback: What's a Piggyback Mortgage?
- 06/23/19 07:47 AM
What's a Piggyback Mortgage?
As if! As if mortgages weren't complex enough, now you're going to tell me there's such a thing as TWO mortgages stacked on top of each other --- just to buy the same home you could otherwise get with one mortgage? Are you a glutton for punishment?
OK, calm down. You're correct about the part that adding a second, or "piggyback," mortgage might add complexity, but you're not quite right about the fact that our buyer could have just as easily killed the proverbial financing bird with one stone/loan. Often, when we suggest borrower consider secondary financing, aka a piggyback loan, … (15 comments)
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piggyback: Using RSU Income to Qualify for a Jumbo Mortgage
- 09/01/18 08:15 PM
Using RSU Income to Qualify for a Jumbo Mortgage
Way back in 1997, Jeff Bezos set forth his bold business plan for Amazon, with proviso #9 reading: "We will hire and retain the best people and we will not pay them with cash." Wait. What???
So I guess it's no longer any secret that many technology professionals are compensated with Restricted Stock Units, also known as “RSUs.” And here at the epicenter of the high tech world, namely the Silicon Valley and San Francisco Bay Area, we see a lot of paystubs and verification of employment forms (“VOE”) that include base pay, bonus income and … (0 comments)
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piggyback: 10% Down Jumbo Mortgage with No PMI
- 05/27/18 08:28 PM
10% Down Jumbo Mortgage with No PMI
With the Federal Reserve Open Market Committee poised in June of 2018 to increase in the rates that impact home equity lines of credit ("HELOCs"), home buyers who have traditionally used "piggyback" or "80-10-10" solutions to purchase a home with less than a 20% down payment may have second thoughts. Not about buying the house, per se, but about a HELOC rate that could approach 7% --- with future adjustments possible as well. When Prime Rate was in the mid-3% range, most 80/10/10 loans had very palatable start rates but after a decade of seeing … (1 comments)
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piggyback: Lions and Tigers and PMI, Oh My!
- 05/09/18 07:06 AM
Lions and Tigers and PMI, Oh My!
There are a number of things you should legitimately be afraid of in this life --- great white sharks, cigarette smoke, Scott Pruitt's EPA --- but private mortgage insurance (also known as "PMI") is not one of them. We're going to cover the basics here and I'm going to work to dispel a lot of the misconceptions about PMI. Most importantly, we're going to discuss why PMI on your next mortgage might be an entirely viable solution when you're seeking to purchase a home with less than a 20% down payment.
What is PMI?
Private mortgage insurance, … (9 comments)
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piggyback: Niche Jumbo Mortgage in California
- 02/28/18 07:37 AM
Niche Jumbo Mortgage in California
Not all mortgage scenarios in California --- and especially in the high-cost areas we often see in the San Francisco Bay Area, Silicon Valley and in the greater Los Angeles environs --- fit squarely in "the box." "The Box" is the narrow definition of what it takes to qualify these days, and for a jumbo mortgage that falls outside of the parameters of a conforming or "government," loan, such as FHA or VA. When you find yourself outside and looking in, sometimes the best solution is a "niche" mortgage program.
Now if visions of subprime loans and sky-high rates … (1 comments)
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piggyback: Toxic is Trending!
- 02/06/18 07:07 AM
Toxic is Trending!
A brief review at recent environmental headlines says it all:
January 31, 2018: President Mulling Major Cuts to Clean Energy Research (Washington Post)
January 15, 2018: EPA Loosens Regulations on Toxic Air Pollution (EPA)
January 10, 2018: Climate Change Websites Censored Under President (Envirodatagov.org)
.....
October 9, 2017: EPA Poised to Scrap Clean Power Plan (New York Times)
The list goes on and on. So I thought I'd get on the bandwagon and talk a little trash about how toxic loan features, as designated by the Dodd-Frank Wall Street Financial Reform Act, are making a totally terrific, trending comeback in the world of jumbo mortgage … (2 comments)
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piggyback: A Primer on Prime Rate
- 08/28/17 08:22 PM
A Primer on Prime Rate
When we hear talk of the Federal Open Market Committee (FOMC) adjusting interest rates, there is one index in the mortgage environment that we know will be impacted, even when 30-year fixed rate loans may not see any change to their pricing. This rate is known as Prime Rate and it is the index that is used for most home equity lines of credit, or HELOCs.
If you have a HELOC on your property then it very likely will use Prime to set its base rate, with the addition or subtraction of a margin. Prime Rate itself currently … (1 comments)
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piggyback: 80 10 10 Loan in California
- 06/22/17 07:12 AM
80 10 10 Loan in California
It has been said that the Golden Gate Bridge is one of the most photographed tourist attractions in the world. But before you get out your selfie stick and entertain visions of relocating to California, especially to the San Francisco Bay Area, know that the median home prices here in the middle of 201 tend to hover over one million dollars --- sometime by more than just a little.
It stands to reason that not all otherwise eligible buyers will have a full 20% down payment saved when they attempt to buy a home here in our … (2 comments)
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piggyback: Sigmund Freud & Low Down Payment Jumbo Mortgages
- 01/07/17 08:42 PM
Sigmund Freud & Low Down Payment Jumbo Mortgages
In psychology, projection is a form of defense in which unwanted feelings are displaced onto another person, where they then appear as a threat from the external world. Now in a minute, I am going to ask you to relax and tell me a little bit about how you feel about down payments. Specifically those that equal less than 20% of a home's purchase price. We'll analyze if you're projecting your own beliefs, right or wrong, onto reality.
Just for a little background, in mortgage lending, we are not immune from projection. This happens all the … (4 comments)
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piggyback: Work Visa. Go Buy a Home With It.
- 08/14/16 09:19 AM
Work Visa. Go Buy a Home With It.
One of the many benefits of living and working in California’s San Francisco Bay Area (which includes the nine counties of San Francisco, Marin, Sonoma, Napa, Alameda, Contra Costa, San Mateo, Santa Clara and Solano) is that we have a very vibrant employment environment. Indeed, the cutting edge high-tech, biotech, finance and other industries here attract the world’s best and brightest. But what happens when these same employees, who may not yet be US citizens or even permanent resident aliens (“green card”
holders), seek to purchase a home? Can a non-permanent resident alien --- someone … (5 comments)
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piggyback: Jumbo Mortgages with 10% Down (80-10-10)
- 12/10/15 10:49 PM
Jumbo Mortgages with 10% Down (80-10-10)
In just a few days and post the mad scramble of the holidays, it will be a New Year. Yet here in the San Francisco Bay Area, even in late 2015, I encounter real estate professionals who, calling to vet a pre-approval letter I've written for a buyer, will say something to the affect of, "Uhhh, your buyer is only putting 10% down. Can they even do that?"
Of course the answer is "Yes!" But since some doubt still swirls around the topic, why don't we use the conclusion of this year to talk about a type … (2 comments)
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piggyback: How Much Down Payment Do I Need to Buy a Home?
- 11/21/14 10:43 PM
How Much Down Payment Do I Need to Buy a Home?
As kids, there are just some things we all learn while we’re growing up:
Never drink soda after you eat Pop Rocks. Cracking your knuckles will give you arthritis. You’ll catch a cold if you go outside without a jacket. It takes a 20% down payment in order to buy your first home.
After having both a good laugh and some time to gain a little experience, we come to find out that things are not always as we believed when we were much younger. However, in … (5 comments)
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piggyback: Should I Pray or Should I "Co"?
- 09/04/14 12:10 AM
Should I Pray or Should I "Co"?
I tend to see a fair amount of high loan-to-value mortgage scenarios, mostly because real estate values here in Marin County, the San Francisco Bay Area and coastal California, in general, tend to be high. And I think it also has a lot to do with the formidable task of saving the funds necessary to purchase some homes, which we know can take a prohibitively long time. So 10% down payments, or even less, are not at all uncommon, and I’ll see these across the borrowing spectrum, from loan amounts in the conforming range (below … (2 comments)
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piggyback: I Love the 80 10 10's!
- 05/13/14 10:50 PM
I Love the 80 10 10's!
As the title might have suggested, today we're going to look back. But we're not time warping all the way to the Neonscene era to party like it's 1999. No, instead, we are just turning back our Rubik's cube to about 2006, when a homebuyer could purchase real estate with a 10% down payment and little trouble.
It would take a simple mind to forget that the extinction of the piggyback loan (aka, 80-10-10 or 80-15-5 or even 80-20) during the downturn changed everything. In fact, I just recently got a call from a listing agent … (0 comments)
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piggyback: 80-10-10 Mortgage
- 05/05/14 08:12 AM
80-10-10 Mortgage
I was born in 1970.
My grandmother would refer to the Frigidaire, or launder our filthy Dungarees.
A great day was "go to work day" with Dad in Manhattan. There, we might Xerox our handprints and maybe even be allowed to get a Coke with lunch.
You get the idea. I'm talking about genericide --- using a brand name in place of concept or thing. I see this happen all the time in the home finance business with 80-10-10 mortgages, also known as piggyback loans. The short video below explains the basics and, I hope, addresses any confusion or misconceptions quickly and … (7 comments)
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piggyback: Mortgages for Canyon Green, Novato, CA
- 02/18/14 07:06 AM
Mortgages for Canyon Green, Novato, CA
You don't see it too often in Marin County, CA --- new construction, that is. So the other day while I was driving in Novato, I allowed myself the innocent distraction of following the signs to the new development of Canyon Green, located roughly off of the DeLong/Diablo exit and close to the Grant St. downtown area.
There are 6 floor plans available and prices will start from mid-$700's. This means that RPM can finance many of these properties with as little as 10% down (80/10/10 financing).
For … (2 comments)
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piggyback: Who Is a REX Participating Lender?
- 01/08/14 01:32 PM
… (2 comments)
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piggyback: RPM IS BRINGING PIGGY BACK!
- 07/27/12 08:44 AM
… (2 comments)
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How to Rock a 10% Down Payment!!!
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