NC 10% Down Vacation Home Loan?

[Kevin Tornes]

I'm trying to find out if anyone has had luck finding a lender who will allow 90% LTV at a reasonable (less than 5.5%) rate on a second home/vacation home loan. My partners and I are trying to buy a house in Oak Island, NC and need to find a lender who will offer 90% LTV. We've spoken to a few mortgage brokers and it sounds like, due to recent Fannie/Freddie policy changes, the 10% down second home loan is starting to disappear as a loan product. Bonus points if the lender does not sell the loan to Fannie Mae/Freddie Mac for the reasons detailed above. Navy Federal and South State Bank are already on our list. Thanks!

[Kevin Tornes]

@Julia Taylor Thanks for the update. We ultimately decided to go with South State Bank with a conventional loan, but we went with a 10/1 ARM instead of the 30 year fixed. We were able to get a rate of 4.875% at 90% LTV. We feel comfortable going the ARM route as they do have caps in place and the 10 years gives us flexibility to make a move to refinance or sell with plenty of time. The caps are a max of 5% added interest rate in yr 11 (9.875% total)/ max of 2% added interest rate in yr 12 (assuming the max cap has not hit) with a maximum cap of 9.875%.