Unless you have been searching for a 2nd mortgage with bad credit you may not realize that for several years 2nd’s have been almost impossible to get. You call lender after lender bank after bank and the few banks that are still doing 2nd lien equity loans will only approve loans for bank customers with the very best credit scores. One little issue and you are dead to them.
We are excited to share with you details about the best 2nd loan program in the country
Almost any homeowner with a little home equity and the ability to repay will be approved. We can approve 2nd loans with FICO scores as low as 550. If you have read our credit improvement guide you know that’s easy to accomplish without much effort.
We can even approve self employed clients using 24 month bank statements as proof of income instead of tax returns.
All you have to do is pick a loan amount between $50,000 and $350,000 then choose how you want to verify your income with W-2’s and pay stubs OR tax returns OR 24 months bank statements if you are self-employed.
We can even lend to Jumbo customers with 1st balances up to $650,000 to a combined loan balance of one million dollars.
Low fixed monthly payments
Are you worried about rates going up on your adjustable HELOC. You can get fixed payments for 15 years or choose a 30 year adjustable term which is fixed for the first 7 years.
All you have to do to get started is fill out the online application or request a printable one by email. We will contact you to get your proof of income and get you pre-approved before we order the appraisal.
What can you do with the money from a home equity loan?
- Add a pool or remodel your kitchen
- Payoff a line of credit before interest rates rise or your 10 year draw period is up and payments rise
- Take a vacation
- Start a new side business
- Help your kids with college
- Payoff credit card debt
- Pay attorney fees
How much equity do you need?
You’ll need 20% plus $50,000 equity in your home. In other words we can lend up to 80% of your homes value 1st and 2nd combined.
What about a previous bankruptcy or foreclosure?
You only need one year from a bankruptcy or foreclosure. There is no waiting period if you had a short sale or deed in lieu of foreclosure.
What are the pros and cons of putting a 2nd lien on my house to get cash out?
Pros:
Keep your existing low interest rate first mortgage in place without having to pay it off.
This is the most important thing to look at when considering a 2nd. If your rate on your first is above 6.5% then you should do a refinance and pay off the first before you do a 2nd.
Borrow funds for any reason.
Long terms and fixed interest
Closing costs may be lower than a refinance due to a smaller loan amount
Great option for a short term or temporary need for cash out
Cons:
You are going into debt and just like with any mortgage against you home you could eventually loose your home if you do not make the payments.
Rates are a little higher than what you may qualify for with a refinance of your 1st.
Make sure your loan originator compares and discusses all loan options so you can choose the best one. If you have any questions or what to talk about your unique situation please give us a call.