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80-20 Loans Are Back!

Well qualified borrowers can buy a house with $0 down

With Millennial Home Loans quick online loan application, determining if you qualify for an 80-20 Loan and for how much, has never been easier.

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80-20 Loan Program Guidelines

Loan Purpose

  • Purchase only (No refinance allowed)
  • No family-member purchase transactions allowed

Product 80/20 Loan

  • First Loan: 5/1 ARM, 7/1 ARM, and 10/1 ARM
  • Second Loan: Home equity line of credit or HELOC

Credit Profile

  • 720 minimum middle credit score
  • If more than one borrower on the loan use the lower of the two-middle credit score
  • Foreclosure or bankruptcy on credit report not permitted
  • Minimum of 3 trade lines, one of which has a 24-month history
    • Can substitute with a Verification of Rent in place of a third tradeline or lacking a 24-month history
  • No unpaid public records and collections (including medical). All public records and collections require written explanation
  • No judgment, repossessions, or charge-offs in the last 60 months
  • No mortgage delinquency


  • Maximum calculation at the lesser of the purchase price or appraised value
  • Transaction structured as an 80/20 loan
  • Combined loan amount cannot exceed current conforming limit plus 20% of the purchase price

Loan Amount

  • First mortgage loan amount not to exceed current conventional loan limits
  • Second mortgage loan not to exceed 20% of the purchase price


  • Maximum debt-to-income ratio: 31% front-end/40% back-end
  • If 5/1 ARM, monthly mortgage payment based on the initial rate. However, qualifying rate is based on the starting interest rate plus 6%. If the ratios exceed maximum debt-to-income ratio of 31%/40% switch to the 7/1 or 10/1 ARM
  • 7/1 or 10/1 ARM qualify at note rate

Property Type

  • 1 Unit Single Family Detached, Attached, or Condominiums
  • Condominiums must be Agency Guidelines


  • Owner occupied only
  • All borrowers on the loan must have ownership in and occupy the property
  • No co-signers permitted

Property Valuation

  • Full appraisal with interior inspection and photos


  • All loans must be fully documented per Agency Guidelines

Closing Costs

  • Minimum borrower contribution toward closing costs must be $1,000
  • Seller contribution toward buyers closing costs up to 3% of the purchase price
  • Closing costs in excess of the minimum $1,000 required by the homebuyer can come from family member gifts


  • Amortization period:
    • First mortgage: 30 years
    • Second mortgage: 15 years

Existing Properties Owned

  • No additional properties can be owned prior to the home purchase using the 80/20 loan