20 percent down from 2nd mortgage

[straightflush]

What is the name of your state? NY

Hello,

I am involved in an 80-10-10 mortgage from HSBC. I put down my own 10%, and HSBC brings a check for the other 10% to closing as an equity loan.

Now my real estate agent is saying that this does not meet the 20% requirements of the coop and that i need to have the 20% in cash, none can be borrowed. If i submit my application as is, and get denied, i can lose my 10% down payment so he claims.

Do i have any case here? Why should the coop care where teh 10% comes from? They are getting paid regardless.

thanks
ken

[HomeGuru]

Originally Posted by straightflush

What is the name of your state? NY

Hello,

I am involved in an 80-10-10 mortgage from HSBC. I put down my own 10%, and HSBC brings a check for the other 10% to closing as an equity loan.

Now my real estate agent is saying that this does not meet the 20% requirements of the coop and that i need to have the 20% in cash, none can be borrowed. If i submit my application as is, and get denied, i can lose my 10% down payment so he claims.

Do i have any case here? Why should the coop care where teh 10% comes from? They are getting paid regardless.

thanks
ken

**A: I do not have an anser for you other than to have an attorney review the coop rules and regs. You basically DO NOT qualify since the 20% funds must be your own and not borrowed funds.