An innovative mortgage loan program that is making home ownership possible for buyers who may have thought a new home was out of reach is being offered by CUSO of Hawaii Services LLC.
An 80/10/10 mortgage loan program is a “stacked ” loan program that can enable a borrower to avoid having to obtain private mortgage insurance – which most banks or lending institutions will require of a borrower who cannot afford a down payment equal to 20% of the home’s appraised value.
At CUSO of Hawaii, the borrower would take out a 30 year fixed rate conventional first mortgage covering 80% of the home’s value, as well as a second mortgage equal to another 10% leaving the remaining 10% to be covered by the borrower.When CUSO of Hawaii structures this “stacked” loan, the company is able to handle documentation and closing through the entire process, including the second mortgage. The borrower benefits not only in terms of the time saved, but there are no points charged on the second mortgage.
With the addition of proceeds from the second loan, the borrower has the potential of making the required down payment and eliminating the need for private mortgage insurance.
Even buyers financing upscale properties can reap benefits from the 80/10/10 mortgage loan program and keep their transaction below the Jumbo Loan level with its typically higher interest payments.
Portfolio loans, or in house loans utilizing its own funds, are a specialty of CUSO of Hawaii. In addition to funding their own loans, CUSO of Hawaii can also broker loans to other financial institutions both locally and on the Mainland. CUSO of Hawaii is one of a few lenders in Hawaii who offer a second mortgage 15/30 Balloon in which the interest rate is fixed for 15 years and the loan is amortized over 30 years. This loan also does not have a pre-payment penalty which means it can be paid off or refinanced at any time.
Call us at CUSO of Hawaii at (808) 539-0383 to learn more about our 80/10/10 mortgage loan program and other loan products that can make home ownership a reality rather than just a dream. You can also contact us via our website at www.cusoofhawaii.com.
CUSO of Hawaii Services LLC (NMLS# HI-325608) is a wholly owned subsidiary of the Aloha Pacific FCU, Equal Housing Lender.