How long must I be in our home before I can get a second mortgage??? I know to refinance or get an interest only loan it's a year but I believe my parents were not in their house a year yet and they already had a second and third mortgage.
2006-06-20 11:06:29 · 8 answers · asked by Angie 2 in Business & Finance ➔ Renting & Real Estate
Depending on your credit, in most cases you can do a second mortgage right after your 1st mortgage closes. If you have good credit you can borrow up to 125% of the value of your home.
2006-06-20 13:37:46 · answer #1 · answered by Martin 2 · 1⤊ 1⤋
How soon you can get a 2nd mortgage is largely dependent on how much equity you have in your house. For example, you paid a downpayment of $100,000 on a $500,000 house. You owe $400,000 and have $100,000 of equity. You can get a 2nd mortgage up to $100,000. Very few lenders will lend you more money than you can cover with the sale of your house. Let's say you decide to get a 2nd mortgage for $50,000. So now you have two mortgages totalling $450,000 and you still have $50,000 equity on that house. You can get a 3rd mortgage up to $50,000. So you see? it's all based on how much equity you have. Anyone who says it's time based is usually saying that because as long as you are making house payments, you show stability of payment and you are building MORE EQUITY to borrow against. I hope that answers your question!
2006-06-20 11:54:08 · answer #2 · answered by Sugarbear 3 · 0⤊ 0⤋
All lenders are different. If your credit is good enough and you have enough equity in your home, there is no time you have to wait. You will just have to work a little harder and do some research.
2006-06-20 11:43:18 · answer #3 · answered by lester 3 · 0⤊ 0⤋
It depends on who you go to to get that 2nd mortgage. Lenders have their own rules and standards.
2006-06-20 11:11:51 · answer #4 · answered by DEVILSCORNER 2 · 0⤊ 0⤋
Generally you willneed six months seasoning on the 1st loan based on appraisal and other factors but please contact me and I can see if I can help you or answer any other questions for you
Sincerely
Stephen
2006-06-20 11:18:43 · answer #5 · answered by STEPHEN R 1 · 0⤊ 0⤋
you can get a second as soon as you get your home. You don't have to wait.
2006-06-20 11:11:00 · answer #6 · answered by KP 2 · 0⤊ 0⤋
Some lenders will allow it others won't but definitely possible to do.
http://www.lendermark.com
2006-06-20 11:18:45 · answer #7 · answered by lendermark1 2 · 0⤊ 0⤋
doesn't make any difference, depends on amount of equity
2006-06-20 11:12:04 · answer #8 · answered by glenn b 2 · 0⤊ 0⤋