We’ve seen an uptick lately from our conventional mortgage peers whose borrowers are in jeopardy of not getting a loan when the combination of the borrower’s FICO and DTI kills their 1st and 2nd combo. Last week, we funded one such scenario. The scenario unfolded as follows:
  • 1st mortgage – at the high balance limit for the county
  • Credit scores were below 720
  • DTI was above 40% needed for the 2nd mortgage and below 45% needed for the first mortgage, even with our 2nd
We were able to fill that gap and this can work for owner AND non-owner.
  • LTV  – CLTV needs to be 70% or less.
These scenarios are not uncommon and many lenders can still close the loan for their borrower with a private 2nd. And, once the borrower’s DTI and/or FICO improves the borrower can refinance out of our 2nd with a conventional loan. Give us a call- 415.883.2150