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10 Percent Down and No PMI -- BB&T's 80/10/10 Loan
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BB&T’s 80/10/10 loan is one of the best financing options for homeowners who only have 10 percent to put toward a down payment, are looking to buy homes priced up to $900,000, and don't want to pay mortgage insurance.
The mortgage product actually consists of two separate loans: 80 percent of the home's purchase price is financed as a first mortgage, and 10 percent as a second mortgage. The last "10" in the loan's name refers to the down payment required. Splitting the loans -- the first mortgage at 80 percent and a second at 10 percent -- eliminates the need for mortgage insurance.
The interest rate on the 80 percent mortgage is normally in the range of current long-term rates, while the second loan carries a slightly higher rate. One of the advantages of the BB&T option is that it offers rates on second loans that are notably lower than its competitors. As of today, BB&T can do a second 30-year trust at approximately 5.0 percent.
Below is a breakdown on a $780,000 home purchase using an 80/10/10 loan:
BB&T's 80/10/10 Loan
"In markets like this, the 80/10/10 loan is a great option for homeowners who can't or don’t want to put 20 percent down," BB&T mortgage loan officer Kevin Connelly said. "We help a lot of borrowers who are looking to buy a house in the $450,000-$900,000 price range with these loans."
Here is a quick rundown of specifics and eligibility qualifications for the loan product:
- Borrowers who use 80/10/10 can receive loan amounts on homes priced up to $900,000.
- Borrowers must have a credit score of at least 720.
- The loan product is available just for townhome and single-family home purchases.
- The loan is not available to first-time buyers.
- Borrowers must have at least six months of reserves in checking, savings, stocks, or retirement accounts.
For more information about the 80/10/10 loan, click here or contact Kevin Connelly at 703-855-7403 or via email at KConnelly@BBandT.com.
See other articles related to: bb&t, mortgages, sponsored articles
This article originally published at https://dc.urbanturf.com/articles/blog/bbts_80_10_10_loan/6762.
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