 |
Purchase Money Second Mortgage
Purchase Money Second Mortgages are offered with fixed or variable rate second mortgage up to 100% combined loan to value. These are usually the 20% of the 80-20 no money down purchase loan equation. Purchase money 2nd mortgage loans are always closed concurrently with a purchase loan in first position. They are called "Purchase Money" because, they are loans allowed in lieu of a down payment when buying a home. First Time Home buyers like purchase money mortgage loans because it enables them to spend the money they saved for a down payment, on new furniture or home improvements.
100% Purchase Money Second Mortgage (80-20): |
0% down |
95% Purchase Money Second Mortgage (80-15-5): |
5% down |
90% Purchase Money Second Mortgage (80-10-10): |
10% down |
Key Steps of Purchase Money Second Mortgages |
• Loan Disclosures for 1st & 2nd Mortgage
• Rate Lock Agreement for 1st & 2nd Mortgage
• Appraisal- Value is established by an AVM or Licensed Appraiser
• Underwriting Approval for 1st & 2nd Mortgage
• Document Signing with Notary for 1st & 2nd Mortgage
• Loan Funding- Escrow disperses funds, and you own your home |
 |
|
|
|
|
