I received an interesting email today from one of our lenders announcing the COMBO 1st/2nd mortgage was back!!! Wow-this means avoiding the mortgage insurance and their onerous underwriting.  Here is a sneak preview of the terms.  Call us about YOUR situation- Minneapolis mortgage broker

Criteria:  Subject of course to changes at any time!!!

Must be a 2nd mortgage used in conjunction with a purchase-payment is set at 1% of the outstanding balance

Maximum 85% CLTV-(combined loan to value) Some states are set at 75 0r 80%.  We only provide MN loans, so check to see where the program is at.

Maximum loan of 250K and all loans about 80% are subject to a current dollar advance limit

700+ middle credit score

Maximum Debt to income ratio of 45%

All appraisals must be ordered from the lender's approved appraisal company.

Will this loan work for everyone-NO.  But is shows that lenders are assessing the market and willing to begin to get creative again.  To me, it represents that the lenders feel that values have bottomed out.  This is the first time I've seen second mortgages advertised by a lender in about 2.5 years!!