Can I sell my house if I have an 80/20 loan?

I just got my first real job at a bank and I'm looking to move out of my parents' house (i'm 23), but I only have about $2000 saved for a down payment right now. I'm looking at cheap 2 bedroom houses that I can fix up while I live there- maybe get a roommate, not sure yet... but then sell the house in about 2-3 years for a profit (long-term live-in flip)... if I get an 80-20 loan to have a low down payment (i have a 720 score), will I still be able to sell the house after I fix it up in 2 or 3 years? Or will I be constrained by the 80-20 loan terms?

Can I sell my house if I have an 80/20 loan?

The only thing that would prevent you from selling, is if you couldn't get enough money for the home in 2-3 years to pay your realtor and selling costs, and couldn't make that amount up in cash.

You can buy and sell at any time, as long as you can afford to do so. If you buy the right home, fix it up properly, and make some money in a couple years, great. But there's always a risk that you won't make enough to offset those costs.

Plus, how do you plan to pay for the rehab? From your monthly cashflow? Can you do this as a rehab right when you buy it, and fix it up right away? It costs a bit more to finance it that way, but if you've only saved up $2K right now, how else can you afford to fix it?

Just a couple things to think about. Good luck.

Can I sell my house if I have an 80/20 loan?

It is irrelevant whether you have an 80/20 loan or a loan for 100% of the purchase price. The same variables (what your home would sell for, what the commission would be to any realtor who would help you sell it, title insurance, other closing costs, transfer taxes, etc) would be in play.

There are plenty of 100% programs still available - including solid ones through Fannie Mae and Freddie Mac - so pay no attention to the folks who will be along shortly telling you that %26quot;With the changes in the market it isn't possible to get a home without a down payment anymore.%26quot;

Because it absolutely IS still possible.

Can I sell my house if I have an 80/20 loan?

You work at a bank? Uhhh.....maybe start there, just a thought.

Secondly, on an 80/20 you'd be buyin' a house for about $10,000. The numbers are percents and the 20 is the down payment, the 80 is what you would be borrowing. That means you need 10 grand down to buy a 80 grand home. So, you probably aren't going to use a 80/20. Think 95/5, second mortgage, zero down, FHA, first time home buyer, etc.

Just do this:

a. tell loan guy/gal your plan (about selling in 2-3 years)

b. get pre-approved for loan

c. find SOLID home in great location that is SOLID-seriously...you are looking for light remodeling right? You don't want to change all wiring, pipes, walls, etc.

d. Get a good Realtor. Realtor's are FREE when you are buying, you only have to pay when selling.

e. sell in 2-3 years and make a profit which means you bought LOW, and the market has increased your home's value to HIGH by the time you sell AND/OR you have made solid improvements that will pay you more than you paid to put them in.

f. Mortgage does not matter unless you have prepayment penalties to deal with, hence telling the loan officer you whole plan. The buyer will get their own. Some loans are assumable: FHA, VA, etc. and are a bonus when selling since the new buyer can potentially save money stepping into your old loan. Again, ask the loan officer.

Can I sell my house if I have an 80/20 loan?

It doesn't matter what type of loan you have as long as when you sell the house the entire loans(s) are paid off.