Posted by MJOHNSON on October 01, 2003 at 17:53:53:
The lenders I use will not only look at the LTV, but also the CLTV, combined loan to value. The owner will have to assign an interest rate and amortization term for the 20% he will be holding. This will result in a payment for the 2nd mortgage which will be included when determining your debt to income ratio. also, they will require the 80% financing be in the first lein position.
80/20 Loans for High Debt to Income Ratio - Posted by Brandon
Posted by Brandon on October 01, 2003 at 15:32:44:
Here’s my deal: I need an 80% LTV loan. The seller is going to take back a 20% second which I will then buy back after closing for $100 (or some insignificant amount). I have a pretty high debt to income ratio (not over .35, I don’t think), I am employed fulltime and have a good credit score (over 650). I am looking for a lender who will do this. Also, this is legal right?