A couple weeks ago at a Realtor meeting, a lender was touting a program through Parkvale Mortgage Corporation that still offers 95% financing without PMI and no rate increases. This is for clients with a minimum credit score of 720 or above.

I believe that’s an 80/15/5 product. That means an 80% first mortgage, a 15% second mortgage and a 5% down payment. Most of these types of loans have gone away. Not all that long ago, 80/20 100% mortgages were all the rage. Of course we all know what happened next.

This is available on Parkvale’s conforming fixed or adjustable, jumbo fixed or adjustable, construction perm loans and Sellers may pay up to 3% of the purchase price for buyer’s closing costs and prepaids. (Yes, that’d mean you’re only coming out of pocket 7% for the down payment) Of course, most buyers these days who feel a little cash strapped are avoiding conventional loans altogether and are going straight for an FHA loan which offers as little as 3.5% down.

Parkvale is a portfolio lender and that makes a difference in what they can and can’t do. Often, Portfolio lenders can be more flexible than big box lenders. I deal often with Arlington Bank who is also a portfolio lender and, for the most part, if the project/building/home and the buyer look good from a few different angles, they’re willing to make a loan after discussion in round table. Sometimes there might be a catch like opening an account at the bank or putting a little more down but when you can get a loan you couldn’t get anywhere else, a concession here or there is OK.

I don’t usually talk much about individual lender’s mortgage packages and you should explore many different options. I’m not suggesting or endorsing any program here, just passing along useful information. I’m sure readers are always looking for options. This is one.