Availability of 80/10/10 Mortgage

[skerzz]

I’m looking for an 80/10/10 jumbo mortgage for an investment property. Does such loan exist now days and can anyone recommend a broker/lender?

[bake]

I think that’s too high of an ltv for non owner skerzz, but what county is the property located in and what’s the purchase price please?

[skerzz]

Hi bake,

We are looking at a house in San Diego county (San Marcos). The purchase price is $530K. If we can’t find 80/10/10 financing, our other option is to make it our primary and get a low downpayment (and no mortgage insurance) loan through Navy Federal Credit Union and rent out our current house (also in San Marcos).

Thanks,

[bake]

Purchase price of 530,000 in San Diego County gives you a number of different options Skerz, including doing a 78/12/10 and getting the first under the conforming limit of 417,000. Keep in mind if you decide to buy the property owner occupied and keep your present home you need to meet the following criteria, fannie and freddie’s underwriting guideline implemented a few years back to combat the buy and bail borrower:

Must be able to qualify with both mortgage payments unless the borrower has a LTV ratio of 70% on current home

-If 30% equity exists, 75% of the rental income may be used to offset the mortgage payment.
-Rental Income must be documented with a copy of the fully executed lease agreement
-Receipt of a security deposit from tenant and deposit into the borrower’s account must be documented.
-Reserves of six months PITI for both properties is required.

If you’d like to talk more about it I’ll be happy to call you if you send me a direct message with your phone #, thanks!

[Author]

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