Hey folks, many people seem to be under the impression that you have to put 20% down to buy a home. That is simply not the case. There are many programs and options available to those who cannot or do not want to put 20% down. Not only do you not have to put 20% down, but you can put less than 20% down AND still avoid PMI (Private Mortgage Insurance). We do a lot of what we call 80/10/10’s which is a loan with 10% down, a first lien of 80%, and a second lien of 10%. Because your primary loan doesn’t exceed 80%, there is no PMI. How great is that??

Another scenario in particular where having two loans makes a lot of sense is if you’re buying the new house before selling the current one and your intention is to chunk a load of cash on the new loan when the current home sells. A better option is to get two loans, making the second for about the amount you’re going to want to pay down on the new loan from your sales proceeds. That way, you not only eliminate that much debt, but the monthly payment that goes with.

We can also do these on second homes. If you’re wanting to buy a second home at the lake, beach, or hill country, it will work on one of these as well. To qualify as a second home, it must be at least 50 miles away from your primary residence and/or in an area where it is common to have a second home.

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