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Two in One
Many potential homebuyers have decent credit and savings to cover closing costs, but they do not have money to make a down payment. The idea of emptying a savings account to cover closing costs and down payment may not be appealing. Buyers like this should consider an 80/20 Combination Mortgage. The 80/20 combo is actually two loans instead of one. The buyer receives one loan for 80% of purchase price and a second loan for 20% of purchase price. Although these types of loans may have a little higher interest, buyers do not have to purchase mortgage insurance. When inquiring about an 80/20 combo ask about credit score, savings reserves needed, and mortgage/rental history requirements necessary to qualify.
In order to achieve your goal to become a homeowner you must investigate your choices, educate yourself and receive advice from high-quality, trustworthy professionals. Once you understand all of mortgage possibilities available you can make decisions necessary to make your dreams come true.
Kevin Onizuk has been in the mortgage business since 1994 and co-founded Breakwater Mortgage in 2003. His background covers many aspects of lending. Breakwater Mortgage has one office in Virginia Beach and two offices in Williamsburg, Virginia. Kevin Onizuk and the Breakwater Mortgage team are dedicated to providing the highest level of service available in the mortgage industry.