Over the last couple of years the only way to get a loan above an 80% loan to value was to get a San Diego conventional loan with Mortgage Insurance or a San Diego FHA loan with Mortgage Insurance.
This was due to the fact that most lenders were not willing to offer second mortgages above 80%.
Many borrowers don’t like the idea of having mortgage insurance because it is not deductable on their taxes, whereas the interest on a second mortgage would be.
Recently, a few lenders have started to offer second mortgages up to 85% combined loan to value (CLTV), but I have a new program that will allow us as San Diego Mortgage Brokers to go to a 90% CLTV with no mortgage insurance by using a second mortgage.
This loan is an equity line with a 10 year interest only period and then a 20 year repayment term. The rate is Prime + 1.99% or currently 5.24%.
The equity line limits are a minimum of $10,000 up to a maximum of $350,000.
This equity line second allows the combination of a first mortgage and second mortgage up to a loan amount of $750,000 at a 90% CLTV with a 700 Fico score or up to $1,000,000 at an 85% CLTV with a Fico score of 720.
If you would like more information about how this loan program can help you avoid mortgage insurance and qualify for a loan amount up to $750,000 at 90% CLTV please request a rate quote HERE or contact me at 619-312-0612.
The Mortgage Planners are a San Diego Mortgage Broker who offers multiple loan programs like San Diego Jumbo Loans and FHA loans.