Agent

Is 80-10-10 financing dead?

Falling property values have lenders worried

The real estate event of the summer
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One of the few certainties in the real estate business is that it's always changing. At this point, the financing end of the business changes daily. A lender may approve a loan one day and decide just before closing that it no longer offers that type of financing. Then, weeks later, they are back in the game. It's widely known that the easy-qualifier loans that got so many homeowners into trouble recently are no longer available. Most conventional lenders want the borrower to put cash into the deal, have very good credit scores, and be able to verify employment. Mortgage lenders are in a very cautious mode. The 80-10-10 financing, a popular financing vehicle for qualified, low-cash-down buyers, has virtually disappeared. With 80-10-10 financing, the buyer makes a 10 percent cash down payment. A conventional lender gives the buyer a mortgage for 80 percent of the purchase price, and the borrower takes out a second mortgage against the property for the remaining 10 percent. ...