The 80/10/10 Home Loan: 10% Down JUMBO Home Loan Option (Demo)

If you are considering buying a home in King County, Snohomish County, or Pierce County, and the purchase price is above $750,000, and you have less than 20% for a down payment, then the  80/10/10 loan program may be a great option for you.

Today, I am breaking down the 80/10/10 purchase loan program: It’s a purchase program that requires a min of 10% down payment, and then allows for an 80% loan-to-value first mortgage with a 10% (or greater) second mortgage.
It’s important to understand the dynamic surrounding this loan – As I write this blog in February 2018, the max FANNIE MAE loan limits in King, Snohomish, and Pierce County is $667,000.  The way we would originate this loan is:  an 80% first mortgage is typically maxed out at $667,000, with the remaining financed amount (minus the 10% down payment) being the 2nd mortgage.
Here’s what you need to know about the 80/10/10 loan program in 3-minutes or less.

The 80/10/10 Loan Program for Seattle Homebuyers:


A Brief Summary of the 80/10/10 Loan

(1)   700 credit score is required
(2)   A max loan amount of $350,000 allowed w/ 10% down
(3)   Owner occupied and 2nd home purchases only (2nd homes require 15% down)
(4)   Fees: $295 up front loan fee / annual $75 service fee
(5)   Condos and townhomes allowed
(6)   No bankruptcy filed in last 7-years
(7)   No foreclosure or short sale filed in last 5-years
(8)   Interest rate is PRIME (4.5%) plus margin (.99% to 1.99%)
(9)   Margin for pricing based on credit score and loan to value
(10) Monthly payment is based on interest only calculation

How This Looks On Paper

(Disclosure: this is not a rate quote, live example only: 2/3/18)
Purchase Price: $1,000,000
Down Payment: 10% ($100,000)
Base Loan Amount on First Mortgage: $667,000 (max county loan limit)
Second Mortgage Amount: $233,000 (1,000,000 – 10% = 900,000)
900,000 – 667,000 (first mortgage) = 233,000
Min. Monthly Payment for 2nd: 233,000 x 6.99% (prime + margin) = 1,357.23/mo.
1st Mortgage Payment: 667,000 @ 4.5% 30-yr fixed = 3,379.60/mo.
Estimated Property Taxes: $750/mo.
Estimated Home Owner’s Insurance: $100/mo.
**TOTAL MONTHLY PAYMENT: $5,586.83/month**
I hope this information helps. Did this help?  Please let me know if you have any questions, I am here to help! For more information on how I manage the loan process, pre-approvals, and help serve my clients, see below!

The Perfect Loan Process w/ Dan Keller

When we sit down and discuss your pre-approval, budget, goals, and next steps in the home buying process, this slide deck will be the outline for our meeting. Take a look at this slide deck to see how I help educate my clients to be informed home buyers in today’s competitive and fast-moving markets!


Get Pre-Approved With Dan Keller

We make it easy. I encourage each of my clients to reach out to me initially through email or a phone call to have an initial mortgage planning discussion surrounding your current situation, goals, and timeline. There are so many additional factors that go into qualifying for a home loan today, and it’s important that you are working with a professional that is focused on helping you achieve your financial goals, and also, someone who understands the ins and outs of the process and current market trends.
To apply for a home loan, visit my Mortgage Concierge Page and follow steps one and two.

I Want To Be Your Mortgage Advisor!

I LOVE connecting with my social media followers and subscribers on my blog! You are the reason I produce this content and share it weekly on my Making Cents of the Markets Show and on Seattle Real Estate Radio 1300am. I can always be reached directly at 425-350-7136 or via email at
If you found this information valuable, please share it with someone it may help! If you are a real estate broker and would like information like this to be shared at your next office meeting, please contact my office to schedule me at your next office meeting!
More Info On Our Next Home Buyer Class – Home Buying 101 Mixer
Get Pre-Approved With Dan – Apply Now
Monthly Budget With Dan Class –
Download My Mortgage Planning Guide – Dan Keller’s Mortgage Planning Guide
Want to know more about me? Visit my Yelp page to see what others say….

Yelp Mill Creek Mortgage Broker





Related Posts