ONEREPUBLICMORTGAGE
an Illinois residential mortgage licensee 

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Arlington Heights, IL 60004

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The Power of Good Advice

ORM Blog

Your Mortgage Scenario - ORM Solution

August 3, 2018

 

Have you ever had a client that wanted to sell and buy at the same time, BUT they found a house and just can’t wait?

 

 

We recently had a unique scenario, it was tremendously successful, and we would like to share it with you.

 

Scenario

Let’s call them “the Wilson family”. The Wilson’s were in the market to upgrade to a larger home, but they were also selling their current property. After a relatively short search, an opportunity arose, and the house of their dreams was found, it was decided not to wait and risk losing it to another buyer.       

 

Solution

For these clients we wanted to achieve a few key items such as, avoiding Private Mortgage Insurance, Jumbo Loan Underwriting, and higher Jumbo rates. One Republic Mortgage accomplished this through an 80/10/10 mortgage. As soon as the client sold their home, the proceeds were used to pay off the home equity line of credit (HELOC). We basically used the 10% HELOC as a bridge loan to cover what the Wilsons were going to bring as part of the down payment.

 

ORM was able to deliver everything we wanted including our client getting into a regular conventional loan with the best rate possible.

 

What is an 80-10-10 or ‘piggyback’ loan?

 

80-10-10 loans are structured as two mortgages with a down payment. The first number always represents the primary mortgage lien an 80-percent loan-to-value ratio (LTV ratio), and the third number represents the borrower's 10-percent down payment., the middle number represents the secondary loan lien a 10-percent loan-to-value ratio.

 

 

At One Republic Mortgage we strive on creative financing options to accommodate any kind of a purchase situation that arises. Contact our team today, let us help your clients get the most favorable rates and programs available to them.

 

 

Call us today (888)848-6065

 

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