Northeast Financial is excited to announce that we will now be offering Connecticut 2^nd Mortgage Loan Program.  Most noteworthy about this announcement is that many borrowers will now be able to avoid PMI on their upcoming mortgages.  A Connecticut 2^nd Mortgage can either be done as a stand-alone mortgage or as a combination with a first mortgage.  Rates will vary depending on credit scores and the combined loan to value on the transaction.  Furthermore, borrowers can choose loan terms from 5 to 30 years either as a fixed or adjustable mortgage.

2^nd Mortgages have a minimum loan size of 25K and can go as high as 500K.  The combined loans of the 1st and 2^nd mortgage can not go over 2MM.  If a borrower has had a bankruptcy or foreclosure in their past, they will be required to wait 4 years before applying for a 2^nd mortgage.

Stand Alone 2^nd Mortgage Program

• First of all, only a Drive by Appraisal (175K max loan size) is required.
• Secondly, there is a 500K max loan amount with a full appraisal.
• Third, up to 100% CLTV (combined loan to value) is allowed with a 740+ credit score.
• Finally, a minimum 640 credit score is required.

Combo 2^nd Mortgages

• First of all, the first mortgage appraisal can be used.
• Secondly, there is a 500K max loan amount.
• Third, up to 95% CLTV (combined loan to value) is allowed with a 740+ credit score.
• Fourth, a minimum 640 credit score is required.
• Finally, the title from the first mortgage is used to lessen closing costs.

In Conclusion

2^nd mortgages are similar to Home Equity Lines of Credit (Heloc) in that they usually fall in the 2^nd position on title behind a first mortgage.  In contrast to a Heloc, the 2^nd mortgage program is fully amortized. It also gives borrowers the ability to have a fixed loan for up to 30 years.

Northeast Financial is your mortgage resource for when you need a Connecticut 2^nd mortgage, conventional loan, FHA, VA, or USDA mortgage.  Call us today for a free consultation.  The pre-approval process is easy and we will work with you every step of the way.

Thanks,