Piggyback vs FHA

[VictorBurek]

Originally Posted by ciscovpn

Are 80/10/10 piggyback loans still commonly available?

they are still available but it is more difficult to qualify. There are several 2nd lien lenders that will do a 80/15/5 mortgage.

so, i wouldnt say commonly available but if you fit in the above average category regarding credit score, income and assets getting a 2nd lien is very possible.

[ZenMaster2008]

Originally Posted by VictorBurek

they are still available but it is more difficult to qualify. There are several 2nd lien lenders that will do a 80/15/5 mortgage.

so, i wouldnt say commonly available but if you fit in the above average category regarding credit score, income and assets getting a 2nd lien is very possible.

I may look into this once I get 10% saved up. I have great credit, decent income but no real assets besides a few aging cars.

[postmortem]

Terms for second aren't great from what I've been offered. If it is fixed rate, it is shorter, like up to 10 years. Otherwise it is ARM with a hefty balloon payment, often 1/2 of loan amount itself - which you can refinance at a cost. On the other hand, PMI is affected by good credit score; so it might be lower than you expect it to be...

Here's simplistic calculator to compare, in a long run 2nd mortgage will cost less, if you can get fixed rate with no balloon.
Second Mortgage or PMI Calculator - LendersMark.org

[VictorBurek]

In Texas, second lien lenders offer 15 year fixed terms, 20 year fixed terms and 30 due in 15 year term. The last one means you are making a payment based on a 30 year term but in 15 you get a balloon payment for the balance.