You Can Have Your Cake & Eat It Too
You’ve been renting a house for far too long and now long to own a home of your own but don’t have the financial werewithal to consider such an option. Now, now, life ain’t so bad. If you don’t have the down payment to purchase a house but are able to afford a house payment as much as your monthly rent, an 80-20 (80% first mortgage - 20% second mortgage) no money down loan could get you out of the rent trap. Bestsyndication.com reports:
The 80-20 loans are also known as piggyback loans. The buyer takes out a loan for 80% of the cost of the home. Then takes out a second mortgage for 20% of the loan to use as a down payment. The homebuyer has three options for the 20% part of the loan. Most often the 20% loan is secured from a separate lender, but look up for the second loan to have a higher interest rate.
Read more: Using a Second Mortgage for an 80-20 No Money Down Home Purchase Loan
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