80/20 Loans

An 80/20 loan means that one lender will carry 80 percent of the balance of a home loan and a secondary lender will carry 20 percent of the balance. These loans have a minimum down payment requirement of 5 percent. This type of loan is an offshoot of a conventional loan and is most commonly seen on homes that require rehabilitation or remodeling. As with a conventional loan, the interest rate is dictated by your credit score. The higher your score, the lower your rate.

Posted in: Types of Home Loans