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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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  • 5 year ARM: 4.125% (APR 3.269%)
  • 7 year ARM: 4.25% (APR 3.467%)
  • 10 year ARM: 4.375% (APR 3.744%)
    Future Adjustments


Home Equity Line of Credit: 4.25% (APR 4.25%)
Future Adjustments

80-20 Loan Program Benefits

Mortgage Rates as Low as 4.13% (3.269% APR)

  • No money down required up to a purchase price of $566,375
  • Lower interest rates than a traditional fixed rate mortgage
  • Interest rate on the 1st loan is fixed for 5, 7, and 10 years
  • No monthly mortgage insurance premium
  • Unlike the FHA, VA, and USDA loan program there are no financed upfront fees required
  • Seller closing cost assist up to 3% is permitted
  • Available to both first-time home buyers and move-up home buyers

80-20 Loan Qualification Requirements

  • All borrowers on the loan must have a minimum 720 middle credit score
  • Maximum financed loan amount is $566,375. Purchase price in excess of $566,375 will require a down payment equal to the purchase price minus $566,375
  • No foreclosure, bankruptcy, mortgage late payment permitted on credit report
  • No judgements, repossessions, or charge-offs within the last five years
  • Borrower can’t own any other property at the time of loan closing
  • Minimum borrower contribution to closing costs is $1,000

80-20 Loan – Adjustable Rate Mortgage Overview

The 80-20 Loan is comprised of two types of adjustable rate mortgages. This first mortgage and second mortgages account for 80% and 20% of the purchase price; respectively.

The parameters of the first mortgage are as follows:
  • Interest rate is fixed for a period of 5, 7, or 10 years.
  • After the initial fixed rate period, interest rates change, either up or down, based on:
    • A first-time adjustment of no more or less than 2% of the start rate
    • No more or less than 2% for each subsequent adjustment periods
  • A lifetime cap not to exceed 6% over the initial interest rate
  • Interest rate, after the initial fixed period, is based on the 1 Year T-Bill/Treasury rate plus a margin of 2.50%
  • Loan can be paid off at any time without penalty
  • + Adjustable Rate Mortgage – Adjustment Parameters
The parameters of the second mortgage, which is Home Equity Line of Credit or HELOC, are as follows: