It sounds like to me that who ever you are talking to does not want to, or can't refinance you into a new second lien (big banks don't do 2nds), so they want to leave the second lien alone (subordnate). In doing this, you may not have enough room in the 1st lien position to roll in all of your closing costs, so you would need to come out of pocket whatever that $$$ is. You need to find a lender that can do 2nd liens so that they can combine both your old loans together, add all your closing costs to that number, and come up with a new 1st & 2nd lien (A 80% first lien and whatever % number needed as your 2nd lien). Doing this will prevent you from having to pay PMI by going Convientional. If you go FHA, then as you know, you will have MI. The only other issue that could be at hand is your overall credit. What are your scores? Or maybe it's the type of property you have, you have not mentioned this in your past emails, but is this a SFR, Condo, Duplex, 4 plex? Is this your primary residence, investment property, or commerrcial property? Give us a little more info.Feb 25th 2012
It 's not the lender as much as it is actual loan programs a lender can offer from their investors. An FHA loan only requires 3.5% down, there are some Conv. 2nd lien programs that will allow a max 95% LTV by doing a 80-15-5 or 80-10-10. Get with a local lender and ask them how you can get the most for the least. Regards.Feb 25th 2012
Hello Imani,The preceeding answers are correct. An F.H.A. mortgage will goto the l.t.v. you are looking for. I am a dirct F.H.A. lender located in the state of New Jersey. If you would like to email me @ Jdepalma@acremortgage.com I will gladly look into some options for and we can meet face to face in my office if you like. Jeff DePalma /Acre Mortgage and FinancialFeb 25th 2012
Loan programs above 85% exist. It is most likely you will have to pay some form of mortgage premium, though. You didn't say if the second mortgage was taken out when you bought (purchase money) or later (cash out). This can have a bearing on the program and pricing as well. Contact a local Mortgage Banker/Broker, rather than one of the big banks. Unlike a bank employee, who is most likely just an order taker, a Mortgage Broker/Banker is Trained, Tested and Licensed in all aspects of Mortgage Origination. He/She will have access to loan products of many lenders, not just those of one bank, and can properly guide you. But more importantly, He/She is trained to take a look at the various different options available to you and guide you into the one that makes the best sense for your situation. Don't forget to check out your selected Mortgage Originator at the National Mortgage Licensing System at www.NMLSConsumerAccess.org ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.comFeb 27th 2012
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