Does anyone know of any lenders that are willing to do a 80% first mortgage?

Question

I need a lender who can do a 80% first mortgage, and have the seller carryback the 20% second. I am in washington state. Please advise. I have alot of clients that needs this type of financing. Thanks

Answer 1

Plenty of lenders will still allow it. ING for one if you don't mind your clients being taken by their retail side.

Problem is - where are you going to find someone stupid enough to do the 20% second? The 80% is easy....the investors in those seconds are seeing their bonds worth 15 cents on the dollar.

Answer 2

Given the current mortgage situation, it might be tough to get a legit bank to take on a creative financing arrangement.

But, if the buyer has sufficient income and credit to afford both the first and second mortgages, I do not see any reason why the banks will not finance. Doing an 80/20 is not that unusual, banks support that all the time, as long as the buyer has sufficient income to pay both loans.

Answer 3

This is going to be a tough sale on two sides. 80/20 loans are past history, but even then you have to convince the seller that this client of yours with lousy credit should be trusted to pay them their 20%. FOreclosing may be very tough on the seller in the future.

Harvest yourself soem better clients, people need to make normal down payments again. There are lots of decent folks out there, including new buyers.

Answer 4

The seller carrying the 20% as a piggyback is another debt ,
It is NOT 20% down now being required by lenders .
If they are serious , they will save the 20% down and NOT borrow it .
The "borrow - it - all" is how we got in this mess , because people want their home AND the new SUVs and big screen plasmas and whatever . . .

You might find a lender that steps into those subprimes but expect to pay credit card % rates !

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Answer 5

Sub prime is in its death throws at this very moment... although you can get those loans still, it will become harder and harder for your clientele. I would look into a Bank not a third party lender for long-term relationships...Say WAMU or Duetcha Bank or BOA...They may be able to help. Short term...anyone that still is taking those risks will want the business. They are on the way out though. Consider Countrywide for example...they claim to have major $$$s in their back pocket...I see a major problem for them as well. They would never admit it and obviously this forum is anonymous... thyerefore I can say just about anything here without worry.

Answer 6

if your borrower has decent credit there are plenty of places to go. any broker can find dozens of lenders i just got a refi with www.directlendingplanet.com they where fair

Answer 7

yes i know quite a few. email me. i work with over 500 of them

Answer 8

not gonna happen my friend. that ship has sailed.