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jyl - probably with a higher rate second trust deed loan along with mortgage insurance.
FWIW - I was a bank auditor in a prior life. Then the EVP and CFO of a small commercial bank. While an auditor, the S&L's had just begun selling the home loans they originated. It made sense as they freed up cash (capital) to lend to more home buyers. The loans were pooled before they were sold and the risks were both diversified and manageable because they were made with 20% down payments. I would even be ok today with 10% down, so long as it wasn't borrowed and the credit history was good.
When you sweat and scrimp and save that 20% down, the odds of you walking away from it are WAY lower than when you borrow it (as in a 2nd TD).
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David
1972 911T/S MFI Survivor
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