**As of September 2008, obtaining a home equity line of credit, or HELOC, and a second mortgage has become very difficult to obtain.  Many lenders, especially in high cost stated, California, Florida, New York, to name a few, are cutting borrowers existing credit lines.  If you have a zero balance $100,000 equity line of credit, the bank can cut that credit line down to $10,000 or close it altogether if they see fit.

   The reason lenders are doing this is to "protect" themselves from falling real estate values.  Many property owners owe more in mortgages than their house is worth.  When this happens, the homeowner may walk away from the property causing the lender(s) to lose a substantial amount of money.

     To obtain a HELOC or second mortgage in todays lending environment, you will have to have an abundance of equity and excellent credit, usually a 720 credit score or better. 

Second mortgages and equity lines of credit are available for owner occupied homes, vacation homes, and investment properties.

Types of loans available:

Fixed 2nd mortgage, fixed equity line of credit, and adjustable equity lines of credit are all available, and with good credit, and ample equity in your home.

 Income documentation types:

Fully documented, stated income verified assets, and bank statement loans, which can be hard to find these days. 

As of 2008 is it very difficult to find a 2nd mortgage that will go behind an Option Arm first mortgage. 

Since the balance of an Option ARM loan, can go up, many second mortgage and equity line of credit lenders will not do a loan behind the Option ARM.  The further a first mortgage balance can go up, the greater the risk for the second mortgage lender.  If the balance goes up, and the value goes down, and you have to sell the property, the second mortgage incurs a greater loss being that there may not be enough equity to pay their balance in full.

There are a few select lenders that will lend behind the Option ARM.  The rates are higher, but nevertheless the product is available on a limited basis.

Whatever your second mortgage or equity line of credit product you need, there is a good chance I can help!

Call or e-mail me for details or click here to apply on-line!

Kevin Walton

Cell: 805-276-1942

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Catalyst Lending Inc. - 226 Sandberg St - Thousand Oaks, CA 91360
Office Phone: (805) 276-1942 Fax: 800-506-0632 Cell Phone: 805-276-1942

Catalyst Lending Inc. 

 

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