A buyer wishes to purchase a home for $310,000 and has $30,000 for a down payment. He wishes to avoid paying PMI. What is the easiest way to structure this transaction using piggyback financing?
A. Originate a $290,000 loan amount
B. It cannot be done - the borrower will have to have PMI or come up with a larger down payment
C. Originate a $248,000 first mortgage and a $30,000 second mortgage
D. Originate a $248,000 first mortgage and a $32,000 second mortgage
Answer:D
A buyer wishes to purchase a home for $310,000 and has $30,000 for a down payment. He wishes to avoid paying PMI. What is the easiest way to structure this transaction using piggyback financing?
A. Originate a $290,000 loan amount B. It cannot be done - the borrower will have to have PMI or come up with a larger down payment C. Originate a $248,000 first mortgage and a $30,000 second mortgage D. Originate a $248,000 first mortgage and a $32,000 second mortgage