Does anyone know of any banks that are letting you 100% finance 2nd mortgage? I know things have tightened up on the mortgage front but we have good credit and our house values here have been pretty stable. I live in Iowa and would appreciate any advice!

In this economy, I would hope not. I doubt that banks are, but perhaps a smaller financial group might. Try a good mortgage broker - or even ask a real estate professional for current tips. And I guess I have to ask, do you really want to take this kind of risk?

cj/

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I was walking home one night and a guy hammering on a roof called me a paranoid little weirdo. In morse code. -Emo Phillips

For us I don't really see it as a risk. Our home values have only gone down a couple thousand dollars here. Rates are low and we plan on staying in our current home for a long time- so to us it is not a risk at all. The real estate market in Iowa is not terrible like it is other places.

Still, banks aren't interested in taking any risk at all now. Getting a high LTV loan right now is going to be very difficult.

I checked Bankrate.com. It looks like and 80% LTV is the best that anyone is offering right now.

Do you have any local banks that might have different programs? National banks aren't lending.

I would think that there are risks on the income side - loss of job, reduced wages, etc - that have nothing to do with your regional housing market. Who doesn't have those?

Also, I believe that 2nd mortgages are risky in and of themselves because they negate the homestead status...but I could be wrong (and probably am! )

cj/

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I was walking home one night and a guy hammering on a roof called me a paranoid little weirdo. In morse code. -Emo Phillips

My brother works in banking and no one he knows is doing 100% anymore. They are HIGHLY frowned upon, especially since the bailout

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Proud to say I haven't shopped at a Wal-Mart since Sept 2003

From what I have seen they are looking for 20% down. If you have an FHA loan you might be able to refinance a streamlined FHA which may lower your interest rate and you would not have to prove anything they just take the previous information and update it.

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The political system is broke and it's a joke.

We just refinanced our first mortgage to save on monthly payments 90% and had no problems. We are actually adopting internationally and are looking for ways to help pay those expenses and thought a home equity would be something to consider. We are going to call around to local credit unions and see what they can offer us.

A second mortagage is NOT the same thing as refinancing....for those of you who are contributing to this thread and might not know this

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Nobody can make you feel inferior without your consent.

E. Roosevelt

I know OP said 2nd mortgage, but, since Anna mentioned this, I called about a VA loan refinance (STreamline) and it is the same thing, 100% financing, and you can even put up to I think $6,000 of home improvement into your loan, and the closing costs. I guess since the VA guarantees it, they feel better about it??

What about PMI for all these "new" mortgages that people are not paying??? I thought the PMI was to insure the mortgage?

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Doing the right thing isn't always the same as doing the easy thing.

Unless I'm misunderstanding PMI, I believe it is for when someone dies. It pays for the mortgage in that instance.... not just because someone defaults.

PMI protects the lenders in the event of a foreclosure.

PMI covers the lender against a portion of the loss. Say a house sells for $100K. 80% = $80K. That would be the standard loan amount that a person could obtain. However, if a buyer finances a higher amount, say, $90K. PMI insures the $10K which is between 80% LTV and 90%LTV.

With a VA loan, LTV is 100%. There is no PMI because the government guarantees the loan.

With a subprime loan, PMI is not available to the lender at all for obvious reasons.

You are required by law to pay PMI until at least 20% of the home is paid off. PMI here is more info
Private Mortgage Insurance (PMI):Benefits, New Requirements, Homeowners' Protection Act, Terminating PMI, HPA Disclosures, and Home Value Increases - an FRBSF Brochure

PMI benefits the mortgage lender. If something happened (God Forbid) to me or hubby we would still be responsible for the mortgage this does not help us in any way. It helps the lender should we default they are insured for the home buyers' possible foreclosure.

Just because the govt backs the loan doesn't mean you don't pay it. We have an FHA loan and we are required to carry PMI.

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The political system is broke and it's a joke.

FHA loans carry MIP which is similar. It carries an upfront fee which is usually added to the principal amount of your loan and financed as part of the mortgage.

PMI and MIP actually does help out the borrower by not having to come up with as large a down payment.

not with a VA loan, thankfully.

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Doing the right thing isn't always the same as doing the easy thing.