Has anyone done an 80/20 loan. If so, how much money did you put down at contract. I am a bit confused because if you are doing an 80/20 you are not doing a downpayment but they require some sort of money at contact for the seller's protections.
Blah I'm so confused!!
IrishBride-05
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Re: Contract Down Payment Info
We're doing 20% down and paid 10% at contract. We'll pay the other 10% at closing.
melijane
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Re: Contract Down Payment Info
You can ask your attorney about a sellers concessiona n you don't have to pit down anything. Basically the bank pays 106% of the value an you give the 6% to the sellers at closing
Bumsie
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Re: Contract Down Payment Info
Posted by KarenK122
Has anyone done an 80/20 loan. If so, how much money did you put down at contract. I am a bit confused because if you are doing an 80/20 you are not doing a downpayment but they require some sort of money at contact for the seller's protections.
Blah I'm so confused!!
An 80/20 loan means that you're doing an 100% financing (borrowing the total amount of your loan). However, even though you're borrowing the total amount you still have to put a down payment on the house in order for the seller to see that you are seriously interested in the house and take it off the market in the hopes of selling it to you. Keep in mind that whatever you put down on contract you will get it back at the closing. Feel free to FM me if you have any questions.
MCDO15
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Re: Contract Down Payment Info
Posted by melijane
You can ask your attorney about a sellers concessiona n you don't have to pit down anything. Basically the bank pays 106% of the value an you give the 6% to the sellers at closing
so the sellers benefits if your doing 100% finiancing?
