Scott Storace - Branch Manager, 100 Pacifica Drive Ste. 140, Irvine CA 92618 NMLS #226339 949.973.0141

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Second Mortgages Return to Nevada!

Beginning May 15, residents of The Silver State can purchase or refinance using a second mortgage to avoid private mortgage insurance premiums!  That’s right!  PrimeLending has partnered with a private lender to offer buyers in Nevada the 80/10/10 home loan once again!

What is a Second Mortgage?

A second mortgage or, home equity line of credit, is a loan in second position behind the first.  Historically, second mortgages were used to help buyers get into homes with no money down.  Of course, when disaster struck and millions of homeowners lost equity in their homes overnight, the second mortgage had to go.

Fortunately, the housing market has seen a huge marked recovery!  And, with it is the return of the second mortgage.  That’s right, the 80/10/10 home loan is back in the Silver State.  With slightly different parameters, this second mortgage option re-introduces the advantages of financing a home without private mortgage insurance.  More specifically, the 80/10/10 home loan option allows a buyer to put 10% down on a home, opening a line for the remaining 10% while securing a conventional loan up to 80% LTV.  This way the buyer makes payments towards a credit line as a opposed to a private insurance.

Why the 80/10/10 Second Mortgage Option Saves More!

Household income hasn’t budged much since 2011.  But, rents have increased which has made it very challenging to save.  Furthermore, home value gains are perceived by some as “overvalued” as opposed to “recovered.”  As a result, many buyers are unsure of their actual buying power.

So, what options do buyers have?  Below, I’ve listed three low down payment financing options.  Each program has it’s place in the market and may be more appropriate for any specific buyer.  But, the 80/10/10 second mortgage option, has money-saving potential that’s in the triple digits!

*Rates for all programs, including the 80/10/10 piggyback loan, are only examples and are not taken from current rate sheets. Your rate may be higher or lower depending on several factors like credit score, property-type, etc.

*Rates for all programs, including the 80/10/10 Home Equity Line of Credit, are only examples and are not taken from current rate sheets. Your rate may be higher or lower depending on several factors like credit score, property-type, etc.  The Home Equity Line of Credit is known as a second mortgage.

Nevada!  Are You Ready?

Let’s recap the benefits of the 80/10/10 second mortgage loan option:

  • Purchase a home with a smaller initial investment
  • Reduce savings period
  • Expand loan limits because the market has “recovered.”
  • Avoid costly PMI premiums and hefty FHA fees
  • Work around low-ball appraisals
  • Bypass subjective re-subordinations
  • Purchase a 2nd home up to 85% LTV

For buyers with more questions regarding the 80/10/10 second mortgage loan option, please contact Scott Storace.

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