Third Mortgage Loans


Third Mortgage Loans


What Is a Third Mortgage Loan?

There are a few private lenders offering third mortgage loans from Non QM and hard money lending sources. You will not find 3rd mortgage programs from traditional lenders, so you came to the right website. BD Nationwide will help you find 3rd mortgage loans from experienced private money lenders.

What exactly is a 3rd mortgage lien? A third mortgage is a loan that is subordinated to existing first and second mortgage liens. It is very rare to find home equity lenders that offer 3rd mortgage loans these days. They were much more common into the seventies and eighties before the savings and loan scandals changed to course of home mortgage loans. Third mortgages are liens that are prioritized lower than first or second mortgage loans.

Hard Money Lines of Credit and Private Money Loans for 3rd Mortgages

It is possible to find properties still that have two, three mortgages or land contracts at the same time. Third mortgage programs are very difficult to find these days; however, there are a few private money and hard money lenders that continue to offer this type of alternative financing.

Can I qualify for a 3rd mortgage if my combined loan to value is at 100%?

It is very difficult to find a lender who will allow lending for third mortgages beyond 90%. Programs come and go, so occasionally you will find a third mortgage up to 100%, but there are typically loan amount restrictions that hinder the appeal. The other important factor is credit. Credit scores will need to exceed 700 for most 3rd mortgage programs unless you have more equity. There are several private money lenders offering low interest third mortgage programs for cash back, home remodeling, debt consolidation and more. In 2020, we are hearing that 70-75% CLTV is most common for third mortgage programs.

Can I get a Home Equity Line of Credit with a 3rd Mortgage?

3rd Mortgage Lines of Credit- Some home equity lines are considered 3rd mortgage loans. Like the fixed rate third mortgages, it is very difficult to locate a mortgage broker or bank who will offer you a secured line of credit in 3rd position. It is possible, so if you have equity in your home, and you want to leave your existing first and second mortgages out of the refinance, then a third mortgage credit line may be an option for you to get cash. If you have been turned down for a third mortgage program due to low fico scores, ask about the home equity loan for bad credit.

Getting Cash Out with a Third Mortgage for Debt Refinancing

Primarily used for debt consolidation, this type of refinancing helps pay off high-interest debts such as credit cards, judgments, tax liens, medical debt, or foreclosure bailout. Unlike the typically high-interest credit card debt and adjustable rate personal loans associated with these debts.

Getting Cash Out with a Third Mortgage for Business Purposes

This option allows you to tap into the equity of your home or investment property. Potential loan purposes encompass purchasing an investment property, renovating an investment property, buying a business, obtaining operating capital for a business, buying out a partner, and more.

Get Help Securing a Low Rate 3rd Mortgage Loan Now

Various circumstances may lead a homeowner or real estate investor to seek access to the equity in their real estate. This could involve consolidating multiple debts with higher interest rates into a more manageable, streamlined payment, funding property renovations, securing capital for business operations, or addressing emergency expenses.

The utilization of a third mortgage loan usually becomes viable when it is economically and practically advantageous to maintain the existing first and second mortgages in priority. It’s crucial to recognize that third mortgage financing is a highly specialized product offered by only a select few 3rd mortgage lenders. Ask BD Nationwide to be matched with private money lenders that offer high risk equity loans and HELOCs.

Third Mortgage Benefits

• Quick Cash Out with a 3rd loan
• Hard Money Lines of Credit
• Home Rehab Funding
• Consolidate Bills without Refinancing
• Interest Only Payment Options
• Third Mortgage Credit Lines

Lien position is relevant because in a foreclosure proceeding, the legal entities would determine which mortgage lenders are paid first based on lien position on title. Discuss your goals with a loan officer that works for a lender like BD Nationwide that offers hard money equity loans.

Consider a 3rd mortgage HELOC if you have a low interest rate on your first and second mortgage. There are a handful of private equity companies advertising third mortgage loan programs for the purposes of cash out, real estate investments, and much more. In 2024, several equity lenders announced new third mortgage products for construction, rehabilitation and even house flipping.

3rd Mortgage Lines of Credit- Some home equity lines are considered 3rd mortgages. Like the fixed rate third mortgages, it is very difficult to locate a mortgage broker or bank who will offer you a secured line of credit in 3rd position. It is possible, so if you have equity in your home, and you want to leave your existing first and second mortgages out of the refinance, then a third mortgage credit line may be an option for you to get cash. If you have been turned down for a third mortgage program due to low fico scores, ask about the home equity loan for bad credit.