Quote:
Originally posted by on2wheels52
Query what is "80/15/5 or 80/10/10"?
Obviously housing market conditions vary, but were I the seller I would tend to turn down contigency sales offers. Our last move we purchased before listing the 'old' property but no doubt not the normal way of doing things.
Jim
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The first number is the LTV (loan to value, or percentage of the loan to the selling price) of the 1st loan, the second number is the LTV of the 2nd loan, and the third number is the down payment percentage. An 80/15/5 has a 95% CLTV (combined loan to value). I don't think the best rate 1st loans allow a CLTV over 90%.
Nathans_Dad should check with his real estate agent to see if a contingent offer hurts his chances of getting into contract. It appears he wouldn't be making offers until his old house is in contract, which makes for a stronger contingent offer.
My understanding is multiple credit checks for the same purpose (such as a mortgage loan) within a 45 day time frame count as one inquiry. So getting a HELOC right now probably wouldn't affect his score. However, HELOCs tend to report on credit reports as secured revolving credit lines, so it could hurt his score. It might be safer to get a fixed rate 2nd on his current house, as a fixed rate loan might be less damaging to his FICO score.
If Nathans_Dad has a FICO of 700+, he can state his income and assets and still get full doc pricing. If his stated income is reasonable for his employment, he can guarantee qualifying. If he legitimately qualifies for one or both houses on his verifiable income, his FICO can be a lot lower.
Another solution would be to borrow enough money from family to qualify for 10% down + closing costs + 3-6 months reserves. This should be done so that the two most recent bank statements don't show the deposit of the loan, which makes it appear to be "seasoned" assets.
There's a lot of unanswered questions, so it's really hard to map out a strategy. Without knowing all the facts, much of the advice here could crash and burn. Nathans_Dad should talk to a loan officer at a large lender with many products in the state he's buying in, such as WaMu, Countrywide, or a reputable mortgage broker.