With the tight credit market, can you still get a mortgage by only putting 5% down with good credit above 750?

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Main question is if you can still finance at home purchase by getting a second loan for say 15% + the first loan of 80% (to avoid PMI). Also in this example by putting 5% down. If this is still a financing option, what type of interest rate would that second loan carry? Thanks for all informed answers!

  1. Reply
    May 3, 2011 at 2:08 am

    yes you can but not with an 80/15. The problem now is the 2nd is considered very high risk. You are more likely to get a great rate on a 95% fixed with just 5% down. You might want to look at an FHA loan, your situation is the reason FHA loans are available.

  2. Reply
    Serge M
    May 3, 2011 at 2:29 am

    You won’t get an answer here. The way to find out if it is possible is to try to do it. A lot may depend on who is providing the second mortgage. If it is a relative trying to help you, you may be able to get a reasonable interest rate. If it is an investor in second mortgages, you can expect something like 12-15%. and the rate of the first mortgage may not be very favorable.

    A better approach may be to save some more money or go for a less expensive house, or both and come up with a decent down payment. Borrowing 95 percent of a home’s price with two mortgages is stretching yourself very thin. At the first sign of trouble, such as an illness or job loss, even if temproary, you could lose the house and everything you invested in it.

  3. Reply
    Kelvin S
    May 3, 2011 at 2:30 am

    I just got a mortgage putting 0% down and my credit score is 747

  4. Reply
    Kirk Mortgage king
    May 3, 2011 at 2:32 am

    yes you can get good financing at above 750. Right now you could possiable get a rate of 6.5-9.5 on a second. If you have anymore questions feel free to emial me.

  5. Reply
    May 3, 2011 at 3:01 am

    You can still get 95%-97% and in some cases still get 100% financing. You will just have to give more information and documentation than before. The mortgage companies guidelines have changed to provide more responsible lending. The 80/15 is probably going to be in the bracket of much tougher to get because PMI is going to be almost a must for any loan over 80%. The Lending guidelines have really changed. One option you may have is with a state bond type loan and those have remained very individual state by state. Talk to your local lender and see what your best options are.

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