Wed, 30 May 2007 21:42:49 -0700 from Tim Smith reply_in_group@mouse-
potato.com:
One possibility is 80-10-10 financing. You take an 80% normal mortgage,
and make a 10% down payment, and take a home equity loan equal to 100%
of your equity (which is 10%). The home equity loan plus your down
payment makes 20%.

The advantage this has over just doing 10% down and borrowing 90% is
that many lenders will require private mortgage insurance then. That
can cost more per month than the payments on the home equity loan in an
80-10-10 arrangement.

Maybe there's something I don't understand(*), but every time I've
dealt with a mortgage bank they've tried pretty hard to make sure the
down payment isn't borrowed money. For instance, a year ago when I
bought my present home I had to show several months' bank statements
to prove that my down payment was savings and not a recent loan.

This scheme essentially means borrowing half the down payment -- and
simultaneously taking on a second mortgage. Does any decent lender
really go for this?



(*) "Oh, don't be so modest, Stan. There are *many* things you don't
understand!"

--
Stan Brown, Oak Road Systems, Tompkins County, New York, USA
http://OakRoadSystems.com/