Posts Tagged "80/20"

First time Home Buyer and confused. What is the Difference between an 80/20 and an FHA Loan?

on Dec 2, 2012 in FHA Information | 1 comment

Question by Dennis: First time Home Buyer and confused. What is the Difference between an 80/20 and an FHA Loan? I am a first time Home buyer, pill and my Loan Officer is confusing me about an 80/20 and an FHA Loan. To anybody familiar with these terms, more about can somebody explain it to me what these two types of Loans are? And which would be advantagous on my part. Thank you. Best answer: Answer by ~Concerned~FHA federal housing authority affialiated with hud. 80/20 is 80 % of the loan is pd by one lender and 20% by the other basically meaning you have 2 loans. Known as piggy back loan, just helps you qualify for more of a home. I think your loan officer can answer this better if you ask for a detailed explaination….depending on the home you get would be which loan I would get. But FHA would be a better way as long as rates are good. FHA loans your less likely to have to produce a down payment. I had to add this to knowing which program is right for you will depend on several factors. Consider how much money you have available for down payment. Make sure you sit down with your lender so that you clearly understand your budget before looking for a new home. And when “doing the math” for your own situation, be sure to keep in mind that you’ll likely need to cover expenses like earnest money, mortgage insurance and closing costs for the transaction. On a 80/20. FHA loans your less likely to have to produce a down payment. Sorry I got to thinking about it and had to refurbish. Give your answer to this question below! First time Home Buyer and confused. What is the Difference between an 80/20 and an FHA...

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