Buying in NYC 80/20

[NooYowkur81]

With the credit crunch going on right now and lenders being a little more strict giving out loans, are no down or 80/20 loans still available in this market?

I thought about this before deciding to rent. I just wasn't totally comfortable doing it. It would have been great to own instead of rent though.

[Nick1918]

You can still find no down loans and no down 80/20 loans but you will have to have a excellent credit score and employment history and you will pay a much larger spread (interest rate) vs a traditional loan than before. The 80/20 loans are drying up because they are not as usefull as before. These were used to avoid PMI payments by adding a higher interest rate second loan for the 20% part. But now the PMI is tax deductable, thanks to congress, so the benefit of doing these has decreased and in many cases disappeared.