Return to the Buying and Selling Homes Forum | Post a Follow-Up

second lien?

Posted by new-beginning (My Page) on
Tue, Aug 16, 11 at 0:41

is it actually still possible to get a mortgage on a home and also have a second lien (for the down payment)?

I was astounded at the closing to see my buyer had a second lien on the property (Texas).

Follow-Up Postings:

RE: second lien?

you mean like a 80/20 split?

It is possible to get 80% regular mortgage to avoid PMI and then get a 2nd lien to cover a portion of the down payment. Guess if they have really good credit and the appraisal was enough they could do the full amount if that is what they did.

RE: second lien?

"I was astounded at the closing to see my buyer had a second lien on the property (Texas)."

At least part of the reason went away with the detectability of PMI.

Before that change a second represented deductible interest instead of money waster on PMI.

The second lien holder is the one with all the risk now (and gets payed based on that).

RE: second lien?

I'd be surprised if it was an 80/20 in the current market. Not a lot of people are willing to do 100% financing at any interest rate. 80/15 is still relatively common with 5% down.

RE: second lien?

selling price: $95,500
Mortgage: $93,070
Second: $3,722

RE: second lien?

That looks more like a grant than a traditional HELOC.

There are many non-profit organizations that help borrowers in low-income areas or other areas where they are trying to stimulate home ownership, get into houses.

They sometimes give "grants" to eligible borrowers that are not repayable as long as the borrower does certain things, like occupy the property for 5 years.

Those grants are sometimes recorded as a second lien.

There are also state agencies that do the same thing.

So banks and others are lending money to qualified borrowers.

 o Post a Follow-Up

Please Note: Only registered members are able to post messages to this forum.

    If you are a member, please log in.

    If you aren't yet a member, join now!

Return to the Buying and Selling Homes Forum

Information about Posting

  • You must be logged in to post a message. Once you are logged in, a posting window will appear at the bottom of the messages. If you are not a member, please register for an account.
  • Please review our Rules of Play before posting.
  • Posting is a two-step process. Once you have composed your message, you will be taken to the preview page. You will then have a chance to review your post, make changes and upload photos.
  • After posting your message, you may need to refresh the forum page in order to see it.
  • Before posting copyrighted material, please read about Copyright and Fair Use.
  • We have a strict no-advertising policy!
  • If you would like to practice posting or uploading photos, please visit our Test forum.
  • If you need assistance, please Contact Us and we will be happy to help.

Learn more about in-text links on this page here