We often encourage buyers to put down 20% or more not just to avoid mortgage insurance, but also to make their offers much stronger and to allow us to close in 14 days (80/10/10 financing with two loans requires 21 days).
Buyers are often reluctant to deplete their liquidity, borrow from 401ks, or access gift funds to come up with 20% down payments.
It is important for buyers to remember, however, that they can get lines of credit immediately after close up to 90% of the purchase price, in most cases. U.S. Bank, for example, offers Home Equity Lines up to 90% Combined Loan to Value to borrowers with credit scores as low as 680.
Post-close equity lines can be used to restore liquidity or repay “gift funds.”
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 01524255, NMLS# 335646