Nevada Second Mortgage
Prior to 2007, it was quite common purchase a home in Las Vegas, Nevada with No Money Down by having the financing of the home split between two loans. For example, 80% on the first loan and 20% on the second loan to total 100%. We typically refer to these types of loans as Piggyback loans or Combo Loans. In this instance the borrower is not required to pay Private Mortgage Insurance (PMI) with this style program. Anytime you have more than 80% on your first mortgage, then monthly private mortgage insurance payments are required. One drawback is that the interest rate on the second mortgage is higher. But this is the price you pay for no money down and still avoiding PMI!!
Since the Real Estate Bubble we've had to become used to the fact that piggyback loans and combo loans are near impossible to find. There are relatively few avenues to use in order to find 100% financing or very close to it. You must be dealing with a Mortgage Planner that has the knowledge of a wide variety of loan programs. I am knowledgeable in both conventional loan programs as well as government loans.
Remember to keep in mind that you will need to come in with closing costs. There are possibilities in this market for the seller to contribute towards closing costs. In many loan programs, the lender will allow anywhere from 3 to 6% seller contributions. Always remember to leave yourself as much money in reserves as possible before making your home purchase. It’s always better to be frugal before buying your home and then having extra money left over after the home transaction is complete.
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