Question:

Will a second mortgage lender offer a 125% second mortgage?

Answer:

A second mortgage lender will have tougher requirements for 125% mortgages. Also, it is very likely that stated income over equity loans and credit below 680 will be offered by very few lenders. Due to massive depreciation, most second mortgage lenders offer loans with combined LTV of up to 90%.

However, though 125% second mortgages will be better available in some states, so you might want to check how things are in your state, regarding home equity loans with 125% and 100% financing.

Standalone 2nd mortgages are possible to find online. The good thing about it is that approval is received in 10 minutes. Purchases, however, will take more time.

Second mortgage lenders are likely to cite the same good rates to everybody and the rates on the websites are for prime borrowers only. If you happen to have a lower credit score and they never ask you, walk away. You are wasting your time with advertised rates that are never going to apply to you.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
Was this Mortgage QnA helpful?
Not at all
  • Currently 2.9/5 Stars
  • 1
  • 2
  • 3
  • 4
  • 5
Definitely
Add to this Answer

Mortgage QnA is not a common forum. We have special rules:

  • Post no questions here. To ask a question, click the Ask a Question link
  • We will not publish answers that include any form of advertising
  • Add your answer only if it will contrubute to the quality of this Mortgage QnA and help future readers
If you have trouble reading the code, click on the code itself to generate a new random code. Verification Code Above:
Bookmark and share this QnA: