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Is a 2nd Mortgage a Good Idea?

I am looking to buy a multi-family unit as an investment. My credit scores are 675, 650, and 640 respectively. I applied for a conventional mortgage but my lender told me that it would take 10 months to attain a 700 mid score to qualify. I am selling my current home and will use the proceeds to pay for a 20% down. What are my options? Is a 2nd mortgage a good idea? by eminence644 from Albany, Kentucky. Oct 11th 2021 Reply

Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 4,476 contributions

Your credit scores are problematic for what you are looking to do. Without seeing an actual credit report to know why your scores are low, none of us can give you advice on raising your score. Some items are rather quick to raise scores, some may take awhile. My best advice is just that, raise your score first. next, lenders look at CLTV. This is the Combined Loan To Value on any first and second mortgage, so a 2nd mortgage may or may not be a tool to use. Contact a LOCAL mortgage broker for a 2nd opinion. I lend in MN WI IA SD ND. Find me at - Cambria Mortgage, NMLS 274132

Oct 13th 2021
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