Post # 1
Has anybody who has purchased a home in the last year or two financed using a piggyback purchase money second mortgage? Darling Husband and I are looking to buy a new home and I think the best option for us would be a piggyback. Unfortunately, I’ve talked to several mortgage brokers who have said they just don’t do piggybacks anymore. If somebody has used a national bank or broker to get a piggyback loan, what company did you use?
Please no lectures on why we should put down 20% or yadda, yadda, yadda. I’m an accountant and understand the risks/benefits involved and think that this would be the best option for us. I’d rather not get a conventional loan with a low down payment because then we’ll pay PMI. I’d rather pay interest on the second mortgage and take the tax deduction for it.
Post # 3
@Ms. Kitty: I haven’t heard of anyone getting one of these since the market crashed. I’d just say shop around and see. Best of luck.
Post # 4
You’ll need to look for a loan that’s NOT backed by Fannie, Freddie or the VHA, as I’m pretty sure that the post-economic-meltdown lending requirements through these agencies will not allow this kind of loan any more. You may need to look at credit unions, and online-only non-banking mortgage lenders as most of the loans through traditional lenders are underwritten by one of those agencies In some form or another.
Post # 5
- Wedding: October 2011 - Bed & Breakfast
Back when we first started looking (so a bit more than 2 years ago), we were working with First Place Bank and their loan officer was actually urging us to consider a piggyback loan, even though we had a 20% downpayment. It felt strange to us. But maybe that could be a place for you to start. They are based in Ohio.
Post # 6
Some credit unions don’t require PMI on under 20% down loans. I’d look into that. Otherwise, piggyback and other toxic loans are what sank the housing market. They are gone for a reason – they are very high risk for the lenders!