Wisconsin and Illinois Combo 80/15/5 and 80/10/10 Mortgage Loans

Update: Due to current market conditions and lender requirements the 80/20 and 75/25 programs have been discontinued. We will still offer 80/10/10 and 80/15/5 programs.

LET AMERISTAR TAKE THE PUZZLE OUT OF COMBO LOANS!

Whether purchasing or refinancing your home, you can build your equity (i.e. pay down your mortgage) faster by NOT using a loan that requires private mortgage insurance in the structure of your financing. This is best accomplished with a "Piggy-Back" mortgage.

Private mortgage insurance (PMI) enables you to buy a home with less than a 20 percent down payment. Likewise, it allows refinance loans with less than 20 percent equity in your home. Though PMI allows many people to obtain financing, the added monthly cost can be significant. The portion of your monthly mortgage payment attributed to PMI is like paying rent because paying this money benefits someone other than you.

The Piggy-Back mortgage is simply an additional (2nd) mortgage that represents any amount financed ABOVE the 80% Loan-To-Value level. A first mortgage is written for 80% of the loan-to-value amount with the second mortgage written for the remaining loan amount requested. This prevents the need for PMI. An additional benefit is that ALL of your monthly payments go to the reduction of principle (on your 2 loans) and may be tax-favored. PMI doesn't give any tax advantages and the money paid for it simply vanishes every month.

If you see mention of an 80-15-5 loan, it means that the borrower got a main mortgage of 80 percent of a home's purchase price, a piggyback loan for 15 percent, and made a 5-percent down payment. Combinations, such as 80-10-10, are possible.

Choose a fixed rate, 5/1 ARM or 7/1 ARM for 80% of your financing.
We will attach a second mortgage to finance the remaining 15%.
We will underwrite both loans at the same time.
Fees are minimal on the second mortgage loan.
We will lend you up to $250,000 on the second mortgage loan.
80/15/5 and 80/10/10 available.