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Company Loan Type APR Est. Pmt.

second mortgage

Posted on: 05th Jul, 2010 05:27 am
can i take second mortgage as the 1st one is still exist?
also please let me know if yes then can i use same financial institution for second mortgage too?
Are you asking about a 2nd mortgage on the same home you have a 1st mortgage on? If so, qualifying for a 2nd mortgage requires you have sufficient equity in the property you want to obtain it on. Depending on where in the U.S. you are 2nd mortgage lenders may require anywhere from 50-10% equity in the home remaining after you obtain the 2nd mortgage. 2nd mortgages require excellent credit and a 45% debt to income ratio.

If you are asking about a new mortgage on a separate home, thus being the 2nd mortgage you would have, then those are possible if you can qualify for both the existing debts + the new mortgage payment. 20% down payment is required and usually better than average (but not excellent) credit is needed, along with a debt to income ratio of 45% or less.
Posted on: 05th Jul, 2010 09:51 am
Hi shane ,

Thanks for quick reply but i was egar to know the second mortgage for different property....
Is it possible?
Posted on: 06th Jul, 2010 06:58 am
Hi Nelria,

Yes it is, I briefly went over the requirements in that second paragraph. In addition to the 20% down payment, debt to income ratio requirement, you will also need 2 months PITI in reserves for a second home (as in a vacation home or a commuter home) and 6 months PITI in reserves if it's an investment property. Would need full details on your situation in order to say if it's possible for you to purchase.

1. Credit
2. Income
3. Source of income/employment type
4. Monthly debt payments
5. Assets/reserves
6. Location
7. Property type (SFR, 2-unit, etc.)
8. Sales price/value of new property
9. Occupancy (second home, non-owner occupied)
10. Anything else you feel that should be known
Posted on: 06th Jul, 2010 07:43 am
thanks shane for good valuable information
Posted on: 06th Jul, 2010 07:50 am
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