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If you are considering buying a home in King County, Snohomish County, or Pierce County, and the purchase price is above $750,000, and you have less than 20% for a down payment, then the  80/10/10 loan program may be a great option for you.

Today, I am breaking down the 80/10/10 purchase loan program: It’s a purchase program that requires a min of 10% down payment, and then allows for an 80% loan-to-value first mortgage with a 10% (or greater) second mortgage.
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It’s important to understand the dynamic surrounding this loan – As I write this blog in February 2018, the max FANNIE MAE loan limits in King, Snohomish, and Pierce County is $667,000.  The way we would originate this loan is:  an 80% first mortgage is typically maxed out at $667,000, with the remaining financed amount (minus the 10% down payment) being the 2nd mortgage.
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Here’s what you need to know about the 80/10/10 loan program in 3-minutes or less.
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The 80/10/10 Loan Program for Seattle Homebuyers:

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A Brief Summary of the 80/10/10 Loan

(1)   700 credit score is required
(2)   A max loan amount of $350,000 allowed w/ 10% down
(3)   Owner occupied and 2nd home purchases only (2nd homes require 15% down)
(4)   Fees: $295 up front loan fee / annual $75 service fee
(5)   Condos and townhomes allowed
(6)   No bankruptcy filed in last 7-years
(7)   No foreclosure or short sale filed in last 5-years
(8)   Interest rate is PRIME (4.5%) plus margin (.99% to 1.99%)
(9)   Margin for pricing based on credit score and loan to value
(10) Monthly payment is based on interest only calculation
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How This Looks On Paper

(Disclosure: this is not a rate quote, live example only: 2/3/18)
Purchase Price: $1,000,000
Down Payment: 10% ($100,000)
Base Loan Amount on First Mortgage: $667,000 (max county loan limit)
Second Mortgage Amount: $233,000 (1,000,000 – 10% = 900,000)
900,000 – 667,000 (first mortgage) = 233,000
Min. Monthly Payment for 2nd: 233,000 x 6.99% (prime + margin) = 1,357.23/mo.
1st Mortgage Payment: 667,000 @ 4.5% 30-yr fixed = 3,379.60/mo.
Estimated Property Taxes: $750/mo.
Estimated Home Owner’s Insurance: $100/mo.
**TOTAL MONTHLY PAYMENT: $5,586.83/month**
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I hope this information helps. Did this help?  Please let me know if you have any questions, I am here to help! For more information on how I manage the loan process, pre-approvals, and help serve my clients, see below!
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The Perfect Loan Process w/ Dan Keller

When we sit down and discuss your pre-approval, budget, goals, and next steps in the home buying process, this slide deck will be the outline for our meeting. Take a look at this slide deck to see how I help educate my clients to be informed home buyers in today’s competitive and fast-moving markets!
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Get Pre-Approved With Dan Keller

We make it easy. I encourage each of my clients to reach out to me initially through email or a phone call to have an initial mortgage planning discussion surrounding your current situation, goals, and timeline. There are so many additional factors that go into qualifying for a home loan today, and it’s important that you are working with a professional that is focused on helping you achieve your financial goals, and also, someone who understands the ins and outs of the process and current market trends.
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To apply for a home loan, visit my Mortgage Concierge Page and follow steps one and two.
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I Want To Be Your Mortgage Advisor!

I LOVE connecting with my social media followers and subscribers on my blog! You are the reason I produce this content and share it weekly on my Making Cents of the Markets Show and on Seattle Real Estate Radio 1300am. I can always be reached directly at 425-350-7136 or via email at dkeller@guildmortgage.net
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If you found this information valuable, please share it with someone it may help! If you are a real estate broker and would like information like this to be shared at your next office meeting, please contact my office to schedule me at your next office meeting!
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More Info On Our Next Home Buyer Class – Home Buying 101 Mixer
Get Pre-Approved With Dan – Apply Now
Monthly Budget With Dan Class – www.BudgetWithDan.com
Download My Mortgage Planning Guide – Dan Keller’s Mortgage Planning Guide
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Dan Keller MLO# 115349

Call/Text: (425) 350-7136

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