Tag: Second Lien

Paying Off a Second Lien on a USDA Streamline Assist Loan

Question: Will USDA allow a second mortgage, which is a housing agency assistance loan, to be paid off using a RD Streamline Assist?  Answer: Unfortunately, you cannot include the second lien unless they subordinate it to the USDA loan. This is from the USDA FAQ’s: Can existing subordinate “silent” seconds be included in the loan […]

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Exceeding the Maximum Loan Amount when Using a Piggy-Back Loan – NEW MC Chart – FHA Secondary Financing

Question: Will FHA allow a Piggy-Back/HELOC with a CLTV of 90% in order to meet the FHA loan limits? NEW MC Chart – FHA Secondary Financing Answer: Unfortunately, not. FHA requires that the Base Loan Amount plus secondary financing amount must not exceed the Nationwide Mortgage Limits (See the applicable guideline below). Reference: 4000.1 II.A.4.d.i.(J) […]

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Forbearance Created Second Lien – Is Client Eligible for Cash-Out?

Question: My client exercised forbearance due to COVID.  The servicer filed a second mortgage on the property for the payments missed.  They are now out of deferment and have made 3 monthly payments on time.  Are they able to do a cash-out refinance and pay off the second mortgage? Answer: Please see and review questions […]

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Refinancing to Combine First & Second Lien

Question: My client purchased a home and then took out a second lien to make some home improvements. They would now like to refinance to combine the first and second lien. Is this a Rate/Term refinance or a Cash-Out Refinance? MC – Refinance Loans – All Agencies Chart Answer: Fannie Mae and Freddie Mac agree […]

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Fannie Mae – Selling Guide Announcement SEL-2019-01 – Dated February 6, 2019

Written By: Lloyd Rutherford, Staff Writer Several selling guide updates were issued to clarify policy.  Read this article to stay up to date on those changes. Rule Synopsis: Fannie Mae is updating their selling guide for a variety of topics. This article will focus on the topics that benefit originators. The updates announced in this […]

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