BAD CREDIT 2ND FLORIDA MORTGAGE LENDERS
- Highlights: 2nd Mortgage Standalones (Cash out up to 500K!)
- Min. 700 FICO up to 100% CLTV
- Min. 660 FICO up to 90% CLTV
- Min. 640 FICO up to 70% CLTV
Eligible Property Types • Single Family (including Modular homes and Town homes+ Villas+ Condominiums)
SECOND FLORIDA MORTGAGE LENDERS NICHES
- Minimum = $50,000 – $Max = $500,000 **Max total financing is limited to $2,000,000 (total amount of 1st and 2nd lien combined)
- Investment properties are permitted with:Min 740 FICO & Max 70 CLTV & 25 & 30year fixed terms only
- 95% CLTV Concurrent Close – Primary and 2nd Home
- Payment shock adjustment not calculated
- 100% CLTV Standalone – Primary and 2nd Home
- Fully amortizing fixed rate loans up to 30 years
- Credit Score as low as 640 with low LTV
- No Title Insurance on loans under $250,000
- Combined liens to $2,000,000
- Drive by appraisal on loans under $175,000
- Max loan amount of $500,000
- HOA Cert not required
- Highlights: Standalones (cash out)
- Min. 700 FICO up to 100% CLTV
- Min. 660 FICO up to 90% CLTV
- Min. 640 FICO up to 70% CLTV
Highlights: Combos (purchase/Refi) - Min. 700 FICO up to 95% CLTV
- Min. 660 FICO up to 85% CLTV
Significant Derogatory Credit The presence of significant derogatory credit dramatically increases the likelihood of a future default and represents a significantly higher level of default risk. Examples of significant derogatory credit include bankruptcies, deeds-in-lieu, foreclosures, and short sales.
Determine the cause and significance of the derogatory information, verify that sufficient time has elapsed since the date of the last derogatory information and confirm that the Borrower has reestablished an acceptable credit history. For cases where a Significant derogatory event is present, the following time periods must have elapsed prior to loan being eligible:
• Foreclosure – 7 Years
• Chapter 7 or 11 Bankruptcy – 4 years from discharge or 4 years from dismissal
• Chapter 13 Bankruptcy- 2 years from discharge or 4 years from dismissal •
• Multiple Events within the past 7 years are not permitted. Both events must be greater than 7 years
• Charge-Off of a Mortgage Account, Deed-in Lieu, Pre-foreclosure Sale or Short Sale – 4 Years
• Modified, Restructured or Short Payoff of any mortgage – 4 years o When a Modification is present the following restrictions apply:
Max CLTV is 85% if within the past 7 years
If the modification contains a balloon feature, the balloon payment CANNOT become due during the amortization period of our new 2nd lien Example: – If the balloon is in 16 years, our new 2nd lien transaction amortization must be a 15-year term. We donot provide loans on a 20-year term since the balloon payment will be due prior to the maturity date of our loan. Modifications due to natural disasters are not considered a hardship modification and are not subject to restrictions so long as the borrower is not currently in the forbearance period
Previous appraisal within 12 months= OK!
• A Clear Val Exterior Valuation (Drive-by) appraisal is required on loan amounts less than or
equal to $175,000. The cost is $149.
• A full Interior Appraisal (1004/1025/1073) is required when loan amount is greater than
$175,000. * Full Appraisals are recommended if the borrower has done significant
improvements that may not show on court house records or drive-by.
Stand Alone
• If Using Previous Appraisal within 12 months, the borrower pays for CDA & PCI = $115
(Collateral Desktop Analysis & Property Condition Inspection)
• Title Fees – Title 365 Fees shown above.
o Loan amount greater than $250,000O: Full Title is required and will be ordered by Spring
EQ. (cost varies by state)
o Loan amounts $250,000 or less – Second Florida Mortgage Lenders will order a property Report = $80.
Combo (Purchase & Refi)
• If Using Previous Appraisal within 12 months, Second Florida Mortgage Lenders pays for the CDA & PCI.
(Collateral Desktop Analysis & Property Condition Inspection)
• Title Fees– The first mortgage title company being used will have their own Title/Notary fees
which will be provided with Submission Form. The$290 & $80 above will not be charged.
o No additional title policy required – We will piggyback off the first mtg title policy
regardless of line amount
2nd Florida Mortgage Lenders Amortization
• Fixed rate 15-30 year terms
• Rate Advantage 6 Month Intro ARM 25-30 years
*Combo Additional
Requirements
• Final Approval from 1 stlien lender showing all conditions met
• Final Closing Disclosure from 1 st lien to confirm final CLTV and DTI calculation
• Agreement of sale
• Title from 1 st lien transaction should be used and must include title insurance/CPL/Wire Instructions
• Second Florida Mortgage Lenders to perform closing agent validation audit prior to closing
• Use of existing appraisal from 1 st
lien is acceptable subject to desk review ordered and paid for by Second Florida Mortgage Lenders
Appraisal Requirements All orders to be placed by Broker and may not be ordered until the Second 2nd Florida Mortgage Applicants has
esigned their intent to proceed
• Clear Val Exterior Valuation
• Loan amounts less than or equal to $175,000
• Full Interior Appraisal (1004/1025/1073) is required when:
• Loan amounts greater than $175k
• DTI > 43%
• Second 2nd Florida Mortgage Applicants request
• Collateral Desktop Analysis for Recertification of existing appraisal:
• Existing appraisal report ordered by another lender that has been completed within the past 12 months from
the settlement date ordered by another lender
• Appraisal product has not been completed by Second Florida Mortgage Lenders
• Current appraisal provided must be on form 1004(Single family) 1025(multi-family) 1073(Condo)
• CLTV to be calculated based on the lower of the CDA value and the Appraised Value
• Risk Score = Low or moderate with no additional review recommended by reviewer
• Analysis commentary contains no comments that adversely impact value, marketability, or condition of the property
• Home Data Index must support either a neutral or increasing market trend
**IF ANY OF THE ABOVE REQUIREMENTS ARE NOT MET APPRAISAL WILL NOT BE ACCEPTED
2nd Florida Mortgage Lenders- Debt To Income Ratios
• Max 50% DTI; >43% DTI requires:
• min 700 FICO, max 90 CLTV
• 25 & 30year fixed terms only
• Full Interior Appraisal (1004/1025/1073)
• If current senior lien is an ARM the fully indexed payment w/in the next 60 months from consummation. If the 1
st adjustment is greater than consummation date the start rate should be used
<680 FICO Requirements • Max 36% Housing Ratio (43% total DTI will still apply)
• Min 2k Gross disposable income
2nd Florida Mortgage Lenders Min Loan Amounts
• Minimum Loan amount $25,000
• Maximum Loan Amount $500,000
**Max total financing is limited to $2,000,000 (total amount of 1st and 2nd lien combined)
Ineligible Senior Lien
• Senior liens with high risk features which can include, but are not limited to:
• Interest Only
• Negative Amortization
• Balloon
• **Balloon terms that resulted from a modification are acceptable so long as all requirements in the modification
section are met
• Reverse Mortgages
Assumptions
• Loans are not assumable
2nd Florida Mortgage Lenders Document Requirements
• Expiration date is based on the note date
• Credit Documents (Income/Asset/Credit report) – 60 Days
• Collateral 90 days
• Title 90 Days
Credit Score
• The credit score used to qualify will be based on a single Experian repository score
Trade lines
• Minimum of three trade lines are required for all Second 2nd Florida Mortgage Applicantss that are contributing income to qualify. At least one trade line
must be open and active for the past 12 months.
• A current mortgage paid as agreed for past 36 months will override the minimum trade line requirement
Second 2nd Florida Mortgage Lenders – Housing History
• No mortgage lates are permitted in the past 24 months for all Second 2nd Florida Mortgage Applicantss and all REO
• For Purchase transactions 12 months rental history verification is required
***IF VOM/VOR is from a private party, cancelled checks or bank statements are required**
Second 2nd Florida Mortgage Lenders – Seasoning Requirements
• No seasoning is required and subject to the following:
• Seasoning 0-6 Months – Must use the lower of the purchase price or appraised value and must meet CLTV
restrictions for a combo loan
• Seasoning > 6 Months – May use appraised value
Second 2nd Florida Mortgage Lenders – Credit History
Credit (Measured from the
disbursement date)
• Period of time that must elapse prior to loan eligibility is as follows:
• Foreclosure – 7 years
• Charge-Off of a Mortgage Account, Deed-in Lieu, Pre-foreclosure Sale or Short Sale – 4 years
• Modified, Restructured or Short Payoff of a mortgage secured by any REO- 4 Years **See modified loan section**
• Chapter 7 or 11 Bankruptcy – 4 years from discharge or dismissal
• Chapter 13 Bankruptcy- 2 years from discharge or 4 years from dismissal
• Multiple events within the past 7 years are not permitted and both events must be greater than 7 years
•
Modified Loans
• When the current first mortgage has been modified, the following requirements must be met:
• Max CLTV is 85%
• If the modification contains a balloon feature, the balloon payment CANNOT become due during the amortization
period of our new 2nd lien
Example: EXAMPLE – If the balloon is in 16 years, our new 2nd lien transaction amortization must be a 15-year
term. You are
not permitted to originate at a 20-year term since the balloon payment will be due prior to the maturity date of
our loan
Employment/Income
Second 2nd Florida Mortgage Lenders – Verification Requirements
• Refer to Second Florida Mortgage Lenders employment and income guide a more comprehensive list of income types
• Income calculation must comply with all Appendix Q requirements as required in the ATR Final Ruling
• Tax Transcripts are required unless income is validated using an automated VOI such as WorkNumber
Second 2nd Florida Mortgage Lenders – Liabilities
• Paying off debt to qualify is permitted.
• Lease payments are not permitted to be excluded
• Student loan – 1% of the balance is used to calculate the payment to qualify when there is no payment reporting
Second 2nd Florida Mortgage Lenders – Property Types
• Single Family (including Modular homes and PUD’s)
• Condominiums
Ineligible Property Types • Cooperatives
• Condotels
• New Construction Condominium Projects
• Hotel/Motel Condominiums
• Mobile Homes
• Manufactured Housing
• Commercial Operations
• Geodesic Domes
• Working farms and ranches
• Unimproved Land
• Properties with >10 Acres
• Timeshares
• Leasehold
• 2-4 unit properties
Condominiums
• Established projects only
• Online search for no condotel or short-term rental
• H06 policy is required
Title Insurance
• Loan amount less than or equal to $250,000O: Owner and Encumbrance Property report to be ordered by Second Florida Mortgage Lenders
• Loan amount greater than $250,000O: Full Title is required and will be ordered by Second Florida Mortgage Lenders
• For combo transactions:
• Title insurance and CPL are required for Second Florida Mortgage Lenders proposed loan
• Second Florida Mortgage Lenders requires risk review to be completed by Secure Insight to validate the settlement agent
Solar Panel UCC
• UCC Filings do not need to be calculated in the CLTV with the following documentation:
• Copy of account statement to ensure obligation is accounted for in the DTI if not reporting on credit
***NOTE: UCC filings that are paid through tax assessments (such as HERO and PACT loans) are not eligible and must be
paid in full with proceeds.
Recently Listed Properties • Properties listed for sale in the past 12 months are not eligible
Occupancy
• Owner-Occupied and Second homes
• Investment properties are permitted with:
• Min 740 FICO
• Max 70 CLTV
• 25 & 30year fixed terms only
Eligible Second 2nd Florida Mortgage Applicantss
• Non-Occupant co-Second 2nd Florida Mortgage Applicantss are not permitted
• Vesting is not permitted to be in the name of an LLC, corporation, or partnership
• Use of a power of attorney is not permitted
• Irrevocable Trusts
Prepayment Penalty
• Not permitted Escrows
• Not required 3 rd Party Estimated Fees
• The following fees are an estimate and will vary based on specific loan characteristics. Second (2nd) Florida Mortgage Lenders will disclose all
accurate fees to the customer within 3 days of receiving the loan application and fees are calculated based on the
information provided in the registration
2ND FLORIDA MORTGAGE LENDERS
What Are The Different Types of SECOND MORTGAGE Second Mortgage Lenders?
There are a few different options for those seeking a second Florida mortgage with SECOND MORTGAGE They include the following:
- SECOND MORTGAGE (HELOC) Home Equity Line of Credit
- SECOND MORTGAGE Home Equity Loan
- SECOND MORTGAGE Piggyback Loans
- SECOND MORTGAGE Purchase Sale Back
- SECOND MORTGAGE Equity Share
ALL LOAN PROGRAMS SUBJECT TO AVAILABILITY
Getting asecond Florida mortgagewithbadcreditto pay off old debts or refinance a Florida tax lien in order to Stop a Florida Foreclosure action can actually result in an improvement in your credit score. The longer you are able to keep your payments up to date and/or lower your monthly obligations the easier it becomes for you to qualify for a (2) second Florida mortgage. It is not easy to find a Florida mortgage lender offering Second 2nd Florida Mortgage Applicantss a second Florida mortgage with SECOND MORTGAGE REFINANCE but anything is possible. You first need to fill out a full Florida mortgage application so we can help you locate the best SECOND MORTGAGE REFINANCE (2) second Florida mortgage loan offerings.
THE RESULT OF SECOND MORTGAGE REFINANCE
A (2) second SECOND MORTGAGE REFINANCE Florida mortgage on your Florida home almost always comes with a higher interest rate than your first Florida mortgage. The reason is, you are adding to your Florida mortgage debt load, which makes you a greater risk to the Florida mortgage lender. Second, the (2nd) second Florida mortgage is subordinate to the first mortgage; therefore, if you default, the holder of the first Florida mortgage is entitled first to any money or equity you can pay before the SECOND MORTGAGE REFINANCE 2nd second Florida mortgage lenders get paid back.
Applying for a SECOND MORTGAGE REFINANCE second Florida mortgage with SECOND MORTGAGE REFINANCE makes you a much greater risk to the Florida mortgage lender. The cost of borrowing is always based on the perceived risk you represent to the lender. The worse your credit situation, the higher the interest and the more equity the lender requires in your home.
SECOND MORTGAGE REFINANCE 2ND FLORIDA MORTGAGE- TO FIX YOUR SECOND MORTGAGE REFINANCE
The first step even before applying for a SECOND MORTGAGE REFINANCE second Florida mortgage is to do what you can to improve your credit. Your credit scores are maintained by the three main credit bureaus: Equifax, Experian and TransUnion. You are entitled to one free credit report a year. You will want to check for any mistakes, and if they exist. Contact the creditor and get the errors removed. If you do have one or 2 30 day late payments call the creditor ask if they would be kind enough to remove the late payments. Usually, all creditor will remove 1 or 2 courtesy late payment removals. Getting late payments removed could be the game changer in getting you approved for a SECOND MORTGAGE REFINANCE second Florida Mortgage.
REDUCE YOUR CREDIT CARD DEBT
If you have high balances on your credit cards , try to pay off an amount that brings you under 25% percent of your credit card debt limit. This is the quickest easiest way to increase your credit score.
Resist trying any quick fixes. Consolidating credit card debt on one card or moving credit card debt to a lower-interest card can actually hurt your chances of getting a SECOND MORTGAGE REFINANCE second Florida mortgage. Multiple credit card applications will quickly lower your credit score.
SECOND MORTGAGE REFINANCE 2ND FLORIDA MORTGAGE LENDERS
Consider using a SECOND MORTGAGE REFINANCE Florida mortgage broker like us!. The good news is that SECOND MORTGAGE REFINANCE doesn’t mean you can’t get a Florida mortgage. There is almost always a SECOND MORTGAGE REFINANCE Florida mortgage lender willing to lend. You might have to pay higher interest to borrow on a SECOND MORTGAGE REFINANCE second mortgage. A Florida mortgage can shop many SECOND MORTGAGE REFINANCE Florida mortgage lenders to find you the best rate you qualify for in your SECOND MORTGAGE REFINANCE circumstances.
GET A COSIGNER
If the terms for which you qualify on a second mortgage with SECOND MORTGAGE REFINANCE are too expensive, consider lining up a co-signer on the loan. A friend or family member with good credit and with whom you have a good relationship can sign the SECOND MORTGAGE REFINANCE Florida mortgage with you. His or her credit score may provide the confidence the lender needs to approve your SECOND MORTGAGE REFINANCE Florida mortgage.
By paying off the second Florida mortgage, which often has a much shorter loan life, you can improve your SECOND MORTGAGE REFINANCE history and enjoy the benefit of theequityout of your home. The key is to reduce your monthly credit obligations so that you can afford your monthly payments.
- FLORIDA SECOND MORTGAGE REFINANCE MORTGAGE LENDERS PROGRAMS INCLUDE:
- FHA SECOND MORTGAGE REFINANCE Mortgage Lenders
- VA SECOND MORTGAGE REFINANCE Florida Mortgage Lenders
- USDA SECOND MORTGAGE REFINANCE Florida Mortgage Lenders
- Jumbo SECOND MORTGAGE REFINANCE Florida Mortgage Lenders
- Hard Money SECOND MORTGAGE REFINANCE Hard Money Lenders
- Condominium Florida SECOND MORTGAGE REFINANCE Mortgage Lenders
- Town House Florida SECOND MORTGAGE REFINANCE Mortgage Lenders
- Manufactured Home Florida SECOND MORTGAGE REFINANCE Mortgage Lenders
- Non Warrant-able Condo Florida SECOND MORTGAGE REFINANCE Mortgage Lenders
