A Home Equity Line of Credit (HELOC) features variable rates and continuing access to funds.

• 30 year Variable Rate (Index plus Margin)
• 10 year Initial Interest Only Draw Period with a 20-year fully amortizing repayment period.
• Use it to Refinance cash out of your home while keeping your existing first mortgage.
• Use to Purchase a home. So that means you get a first and this second mortgage behind it.
• Owner Occupied and 2nd homes only.
• Maximum Line amount $500,000

Interest rates have been at historic lows, so most homeowners have locked in historically low interest rate on their first mortgage. But for those that want to access the equity in their home, an Equity 2nd mortgage might be a good option for them.

That gives you the opportunity to pay off or down credit card or auto loans. It’s also a chance to support your kids with their education, help aging parents or invest in that exciting new opportunity. Whatever drives you, this is your chance.

A second mortgage is an additional loan taken out against a property that is already mortgaged.

These loans can be in the following forms

Second Mortgage

Equity loan: which is a lump-sum loan with a fixed term and rate or

• 20 or 30 year Fixed rate rate loans
• Use it to Refinance cash out of your home while keeping your existing first mortgage
• Use it to Purchase a home. So you that means you get a first and this second mortgage behind it.
• If you Occupy your residence, then based on your appraised value and qualifying income you could get:
  • between 90 – 95% combined loan-to-value of the equity if your mid credit score is over 700+
  • between 85 – 90% combined loan-to-value if your mid credit score is 680 – 699
  • between 70 – 85% combined loan-to-value if your mid credit score is between 640 – 679
  • up to 70% combined loan-to-value if your middle credit score is at least 620
• Investment properties not permitted.
• 2nd homes up to a maximum of 75% loan-to-value.
• Minimum loan amount $100,000
• Maximum loan amount of $500,000

The processing is a little bit more streamlined compared to a applying for a mortgage in the first position.

4 Documents needed for Initial Underwriting

1. Income Documents
2. Homeowners Insurance
3. First Mortgage Statement
4. Photo ID

Top Reasons to Get a 2nd Mortgage

Home Equity Line of Credit compared to a Home Equity Loan

Home Equity Line-of-Credit (HELOC)	Home Equity Loan (HELOAN)
Adjustable Rates Tied to Prime	Fixed Rates
Use and Reuse for 10 years	One Time Use- Fully Funded at Closing
$50,000 Minimum Draw	$100,000 Minimum Loan Amount
Investment Properties permitted on Fixed Rate products.	Investment Properties (1-2 unit) up to 70% of the combined loan to value (based on an appraisal) on fixed rates only.
1 Unit and Condominiums	1-2 Units and Condominiums
Prior-Use Appraisal Up To 4 Months	Prior-Use Appraisal Up to 12 Months

HELOC and HELOAN (Rules for Both)

This apply to Purchase, Refinance Piggyback or Standalone Loans Available

Credit Scores as Low as 640

Drive-by Appraisal Only for Loan Amounts <= $250,000, Otherwise Full Appraisal

Max Loan Amount is $500,000

Max Total Financing is $2 Million (Between 1st and Our 2nd)

No Cash Reserves Required

No Asset Verification

No HOA Cert or Condo Project Docs Needed

All loans Subject to Qualification