Questions?
Q: Does anyone know of good places to get a 125% second mortgage without any questions. I would like to take the money and use it as a down payment on a second investment property. Any help anyone can give would be much appreciated.
A: If you are trying to find 125% mtg on a non-owner occupied property, good luck! It is simply too much risk for the banks to take! It will be much easier for you to find a 100% financing program for the new property. For this you have a couple options. Start with Entrust Mortgage, they are a pain in the butt to work with, and never close on time, but they do offer a great program... 100% bank financing on non-owner occupied properties up to 4 units. It is a two part loan, 80% 1st, 20% 2nd. One note on this program... The closing costs are running about 5 points, with maximum seller paid of 2 points. Which means you need 3 points to close.. The other option you have is to do a 100% CLTV program.. the bank will do the 1st mtg of 85-90%, and you get the seller to do the other 10-15%.. I usually get the best rates from sellers, but if need be you can find a private investor to do the 2nd. One of the best banks to use for this type of product is Finance America. The reason I like them is they use 90% of the rents for qualification, where most banks only use 70-75%. Please note this is not a "silent second" the bank knows about the second and is perfectly ok with