Question:

Is it possible to take a 2nd mortgage with bad credit, without refinancing the 1st mortgage?

Answer:

When you are applying for a 2nd mortgage with bad credit, your credit score and the debt to income and combined LTV ratios will matter the most. To qualify your combined LTV should be below 80% and you can have a credit score of 550. Most often you will be required to provide full documentation, too.

Taking a 2nd mortgage with bad credit has recently become popular as there are many borrowers who need some cash, or would like to consolidate their existing debt without refinancing their first mortgage, but have lower credit rating.

Actually, second mortgages are a good option to consider if you have a troubled FICO score - maybe you experienced recent bankruptcy or had several late credit card payments. Anyways, there are companies out there that could assist you. With some professional help you may get approval for a 2nd mortgage with your bad credit even. There are many sub-prime loan programs that help you reduce debt and monthly payments and are geared exactly to customers with bad credit.

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