believe it??Â Standalone seconds are back
on the market!Â Standalone seconds were
widely popular and offered several advantages over other types of financing.Â When the housing bubble burst, lenders
stopped offering these second mortgages.Â
Well they are back, and available to qualified buyers and homeowners!
seconds are a valuable tool and depending on your personal financial situation,
one that may greatly benefit you. Hereâ€™s what you need to know before you apply
for a home equity line of credit (HELOC).
Second Mortgage Facts:
1.Â Â Â *Â A second mortgage takes a backseat to
your first mortgage.
2.Â Â Â *Â The process is similar to a first
mortgage. Just like your first mortgage, you will need to complete the application
process, your credit and income must qualify as well as obtain an appraisal.
3.Â Â Â *Â There are fees involved.Â You are getting an entirely new mortgage and
some fees will apply including lender, appraisal and/or title fees.
4.Â Â Â *Â Having a second mortgage means you
have two sets of payments to make every month instead of one.
Top Uses and Benefits for HELOCs:
1.Â Â Â * Â Purchase loans for borrowers with
less than 20% down, who do not want mortgage insurance.
2.Â Â Â *Â You can pay off an existing high
balance loan with a new high balance first and HELOC.
3.Â Â Â *Â Obtain cash out or use it as a tool
for debt consolidation purposes.
4.Â Â Â *Â Get completive jumbo pricing when you
combine a high balance first plus a HELOC.
5.Â Â Â *Â Refinance to get out of an existing
6.Â Â Â *Â Replace an existing HELOC nearing end
of the interest only â€œdraw periodâ€ instead of waiting for a subordination.
7.Â Â Â * Â If your
property appraisers below 80%, you can obtain a second instead of mortgage
Guidelines for Helocs:
1.Â Â Â *Â OWNER OCCUPIED ONLYâ€“ no second homes
or non-owner (investment) properties.
2.Â Â Â *Â No non-occupant co-borrowers.
3.Â Â Â *Â Single family homes, condos and O/O
duplexes OK. No triplexes or fourplexes.
4.Â Â Â * Â No I/Oâ€™s â€“OK behind amortized ARMS
â€“TCF qualifies at First Lenderâ€™s Qualifying Rate.
5.Â Â Â *Â Cannot have more than 6 â€œnon subjectâ€
properties â€“ financed or free and clear.
6.Â Â Â *Â Max 89.99% CLTV -Combined liens of
$750,000 or less.
7.Â Â Â *Â Max 85.00% CLTV - Combined liens to
your specific needs, a second mortgage may be a wise financial move.Â If any of these situations sound familiar, or
you would like to learn more, please contact me, Garrick Werdmuller at
510.282.5456 or email me at email@example.com.