What is An 80/10/10 or a 80/15/5?
An 80/10/10 is an 80% first lien, a 10% second lien and a 10% down payment. The 80/10/10 structure allows for 90% financing without mortgage insurance. When a borrower chooses to put less than 20% down for a down payment, he may either split the loan amount into two liens (80/10/10 for example), or he may opt to have one 90% lien and pay mortgage insurance. In the same manner, an 80/15/5 is an 80% first lien, a 15% second lien and a 5% down payment.
