80-10-10 Loan

[ithaca]

I have heard of many types of housing loan and I just came across this so called 80-10-10 loan. What kind of loan is this and what is it usually used for?

[omara]

This type of loan is a combination of an 80% loan to value first mortgage, a 10% down payment and a 10% home equity loan. It can also be 8-=15-5.

[shibuya]

To expand on what Omara had said, this kind of loan will eliminate the need for private mortgage insurance. Also for expensive homes , it can eliminate the need for a jumbo mortgage by reducing the first mortgage to a conventional mortgage.