80/20 Loans still available??

A freind and I would like to purchase property and either do straight rental or RTO/LO. Preferably the latter. Looking at SFH around 100,000 to 125,000. Friend has 700 Fico
and I have 620. Combined we make about 115000 a year. We Have 6-8 month reserves. Looking to go full DOC. Are there 80/20 interest only loan programs available.

Thanks :help


The program you are looking for no longer exists for NOO properties. The best you will find avalable is a 80/10 or a straight 90%. Another option you might consider is using private or hard money to purchase the property and then turn around and do a no seasoning cash-out or rate term refinance. This way you will in effect have 100% financing. Hope this helps.

Thanks christopher w. Is that 90% of purchase price or appraisal?
Also…what interest rate can I expect?

That is 90% of purchase price. Rate depends on the lender. I am closing one tomorrow where the rate is 7.75% at 90% LTV. This customer would have been better off doing a 80/10 but he is only planning on holding the property for a short time.

You no longer can do 100% on NOO?

Are there interest only 80/10 or 90% Loans?


100% NOO loans are gone.


There are interest only products available. They are expensive on fixed rate products. If you are going to use IO it is much cheaper to go with a long term adjustable rate.

Chase has a 80/15/5 product available through their subprime division.
It’s not 100% LTV like you want but it’s 95%, and in this market that’s the best you’re gonna get. Good luck.