Northeast Financial is excited to announce that we will now be offering a Jumbo 2nd Mortgage Program in Connecticut and North Carolina. Most noteworthy about this announcement is that many borrowers will now be able to avoid PMI on their upcoming mortgages. A Jumbo 2nd 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.
2nd Mortgages have a minimum loan size of 25K and can go as high as 500K. The combined loans of the 1st and 2nd 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 2nd mortgage.
Stand Alone Jumbo 2nd 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 2nd 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.
A Jumbo 2nd mortgage is similar to Home Equity Line of Credit (Heloc) in that they usually fall in the 2nd position on title behind a first mortgage. In contrast to a Heloc, the 2nd 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 2nd 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.
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