Question:

When are hard money second mortgage loans used?

Answer:

Hard money second mortgage loans are subprime second mortgages offered to borrowers with FICO scores below 500. Essentially, they are bad credit mortgages that can be fixed or adjustable rate and reach 120% LTV. Hard money second mortgage loans are mostly used for consolidating other high interest debt and credit cards.

Even though you may have enough equity in your home, only some lenders will be willing to help you get a short term hard money loan if you have a score below 500. No doubt many lenders will reject your hard money second mortgage loan application due to your credit since you probably have lots of delinquencies and possibly bankruptcy and/or foreclosure.

Sometimes hard money second mortgage loans are offered with no income documentation and are great for self-employed borrowers.

Recommended helpful present and future homeowners links:
Why: Refinance to a fixed rate loan while mortgage rates are still low.
Link:
Why: Because FHA loans are insured by the US Federal Government they have very competitive interest rates and are easier to qualify.
Link:
Why: Know and protect your credit report and score.
Link: See All 3 National Credit Scores & 3 Reports Instantly, Online & Free
Why: Find your next home and save money.
Link: Search thousands of foreclosures. Free 7-day trial.
Link this QnA Print del.icio.us Digg
Was this Mortgage QnA helpful?
Not at all
  • Currently 3/5 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:

Common misspellings: mortage and morgage