The 125% second mortgage lending requirements have changed dramatically. MLO can help you determine your eligibility on the "125 Mortgage" program. In the past 125 loans were available to borrowers with good credit and income. A few years back, Fannie Mae and Freddie Mac came together in an effort to help equity strapped homeowners refinance their 1st mortgage up to 125%. In 2012, they raised the stakes even more by completely cutting out the loan to value limits so that any borrower with a loan owned by Fannie or Freddie can refinance without any LTV restrictions. Ask a MLO agent about the latest version of the "Home Affordable Refinance."
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MyLoanQuote simplifies the rate shopping on bad credit refinancing people with poor credit scores.

115% Home Loans - Ask about the 203K loan for home rehabilitation from FHA.

MyFico.com - Know your credit scores before shopping rates online.

IRS.gov - Learn more about mortgage interest deductions on 1st and 2nd mortgages.

125% Second Mortgage

Originally the 125 Mortgage was a 2nd lien that enabled homeowners to borrow more than your house was appraised for and receive funds for consolidation and home rehabilitation. For example, if your home is worth $100,000 and your first mortgage is $95,000, you can borrow $30,000, for a total of $125,000. 125 loans have stricter guidelines because of the loan defaults and foreclosures over the last few years. Use your home to get cash and lower your payments. 125 Mortgage lending is available from Mortgage Loan Outlet!

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Many consider the 125 Mortgage to be the perfect loan for consolidating bills. The 125 loan allows you to pay off all of your credit cards, consumer loans, and other bills, combining those outstanding balances into one low monthly payment. You can also get cash out to use as you wish and still have a lower total payment!

125% Second Mortgage FYI:

If you are a homeowner in need of a home equity mortgage but you have not yet built up any equity in your home, don't despair. The 125 loan may be the answer because you are allowed to finance more than your properties value based on future appreciation.

A 125% equity loan is a subordinate mortgage that allows you to borrow up to 25% more than the value of your home. For example, if your home is worth $100,000 and you owe $100,000 on the mortgage, this loan program would allow you to still borrow up to $25,000.

The 125 equity home loan is offered by various online lenders. In most cases, home equity lenders will create their own qualification criteria and guidelines but generally this is a credit score driven program. Credit score driven means that you have to have a certain credit score to qualify for the loan. In addition, your credit score usually determines the maximum loan amount you may qualify for and the maximum cash in hand you may receive. Also, some 125 lenders may require seasoning on the length of time you have lived in your home. Three months is normally the minimum.

When it comes to a property appraisal, most 125 lenders do not require you to obtain one. They generally will use the purchase price of your home as the value if you have lived in your residence for 12 months or less. If you have lived in your home over 12 months, a recent tax assessment, simple drive-by appraisal, or automated value model can be used. An automated value model computer generated assessment of your home's value which is based on recent home sales of comparable houses in your neighborhood

Benefits of 125% Mortgage

  • Borrow without Equity
  • Don't need to touch your existing Low Rate 1st Mortgage
  • Interest May be Tax Deductible
  • Consolidating Debts will Lower your Monthly Payments

125 Loan Program Highlights

  • Second Mortgage with No Equity
  • 1st Time Homebuyers OK
  • Good credit Rewarded
  • Self Employed Borrowers OK
  • Consolidate High Interest Loans
  • Home Equity Lines of Credit

How to find the best 125% Mortgage

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Freddie Mac's weekly survey of mortgage interest rates released Thursday showed that rates on fifteen and thirty year mortgages averaged between 3 and 4 percent for the week.

For most of 2012, 2nd mortgage rates have ranged between four and six percent. The interest rates on credit lines fell below 4% but the interest is variable and annual fees may be applicable.

Take out a Home Improvement loan and make those cosmetic changes that you've been talking about. In most cases, making home improvements increases the value of your property. Home Improvement Loans!

"No Income Verified" Debt Relief Programs - Is your income difficult to prove? We have debt consolidation mortgage loans that do not require the standard income documentation. (like W2's)

Do you have Less-than-perfect credit? - We specialize in debt consolidation loans even if your credit is in "the rebuilding phase".

Bankruptcy or Foreclosure - Even if you've had a bankruptcy, or foreclosure in the past, we will do our best to get you qualified for a debt consolidation loan.

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