2 mortgages/loans on a primary residence (Texas)

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2 mortgages/loans on a primary residence (Texas)

Mark Enis
Member since 2024 · 3 posts · 0 votes

Hi,

A mortgage broker I was connected with through a realtor is telling me that I can't do a 1st position mortgage with an additional 2nd position private loan on a primary residence.  Is this true?

I'm wanting to put 20% down and have a 1st position 30 year amortized mortgage with a 2nd position loan (a private loan from a family member) to finance the property. This would be my primary residence. I'm in greater Houston Texas area. I don't understand why this can't happen. He didn't provide the reasons. Looking for advice. Thanks.

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Andrew PostellPro Member
Lender · Fort Worth, TX · Member since 2016 · 8k+ posts · 6k+ votes
2y

@Mark Enis this is ENTIRELY dependent on the loan product you are using.  So, if you are using a Private Loan as your first lien...then you would need to ask that lender.  If you are using Fannie Mae as your first lien...then you need to ask that lender.  There is no state law that prohibits 2nd liens...if that's what you are asking.  You just need to clear it with the underlying lender.

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  • Tom S.
    Real Estate Investor · Burlington, VT · Member since 2010 · 2k+ posts · 1k+ votes
    2y

    @Mark Enis I'll let the other experts chime in, but my understanding with a conventional mortgage, they don't want any part of the deal to be borrowed funds.  You may be able to close and then do the 2nd mortgage afterwards, however.

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  • Andrew PostellPro Member
    Lender · Fort Worth, TX · Member since 2016 · 8k+ posts · 6k+ votes
    2y

    @Mark Enis this is ENTIRELY dependent on the loan product you are using.  So, if you are using a Private Loan as your first lien...then you would need to ask that lender.  If you are using Fannie Mae as your first lien...then you need to ask that lender.  There is no state law that prohibits 2nd liens...if that's what you are asking.  You just need to clear it with the underlying lender.

    1Reply
  • Mark Enis
    OP
    Member since 2024 · 3 posts · 0 votes
    2y
    Quote from @Andrew Postell:

    @Mark Enis this is ENTIRELY dependent on the loan product you are using.  So, if you are using a Private Loan as your first lien...then you would need to ask that lender.  If you are using Fannie Mae as your first lien...then you need to ask that lender.  There is no state law that prohibits 2nd liens...if that's what you are asking.  You just need to clear it with the underlying lender.

    Thanks. so would you recommend I talk to a different mortgage broker?  I need a mortgage broker who can be more helpful. This one just told me it can't be done and didn't offer any alternatives. I have a family member willing to contribute 150-250k at 4% interest only for 7 years to go toward the purchase to help out and I'm just looking for creative ways to be able to take advantage of that.
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  • Jay HurstBusiness Member
    Lender · Dallas, TX · Member since 2017 · 1k+ posts · 1k+ votes
    2y
    Quote from @Mark Enis:
    Quote from @Andrew Postell:

    @Mark Enis this is ENTIRELY dependent on the loan product you are using.  So, if you are using a Private Loan as your first lien...then you would need to ask that lender.  If you are using Fannie Mae as your first lien...then you need to ask that lender.  There is no state law that prohibits 2nd liens...if that's what you are asking.  You just need to clear it with the underlying lender.

    Thanks. so would you recommend I talk to a different mortgage broker?  I need a mortgage broker who can be more helpful. This one just told me it can't be done and didn't offer any alternatives. I have a family member willing to contribute 150-250k at 4% interest only for 7 years to go toward the purchase to help out and I'm just looking for creative ways to be able to take advantage of that.

     Are you trying to borrow 100% of the purchase price between your two loans? 

    Hurst Real Estate, INC4.989 Reviews
    WebsiteView Page
    0Reply
  • Mark Enis
    OP
    Member since 2024 · 3 posts · 0 votes
    2y
    Quote from @Jay Hurst:
    Quote from @Mark Enis:
    Quote from @Andrew Postell:

    @Mark Enis this is ENTIRELY dependent on the loan product you are using.  So, if you are using a Private Loan as your first lien...then you would need to ask that lender.  If you are using Fannie Mae as your first lien...then you need to ask that lender.  There is no state law that prohibits 2nd liens...if that's what you are asking.  You just need to clear it with the underlying lender.

    Thanks. so would you recommend I talk to a different mortgage broker?  I need a mortgage broker who can be more helpful. This one just told me it can't be done and didn't offer any alternatives. I have a family member willing to contribute 150-250k at 4% interest only for 7 years to go toward the purchase to help out and I'm just looking for creative ways to be able to take advantage of that.

     Are you trying to borrow 100% of the purchase price between your two loans? 


     No, we would be bringing some money to the table for down payment, closing costs, etc.. 

    0Reply
  • Jay HurstBusiness Member
    Lender · Dallas, TX · Member since 2017 · 1k+ posts · 1k+ votes
    2y
    Quote from @Mark Enis:
    Quote from @Jay Hurst:
    Quote from @Mark Enis:
    Quote from @Andrew Postell:

    @Mark Enis this is ENTIRELY dependent on the loan product you are using.  So, if you are using a Private Loan as your first lien...then you would need to ask that lender.  If you are using Fannie Mae as your first lien...then you need to ask that lender.  There is no state law that prohibits 2nd liens...if that's what you are asking.  You just need to clear it with the underlying lender.

    Thanks. so would you recommend I talk to a different mortgage broker?  I need a mortgage broker who can be more helpful. This one just told me it can't be done and didn't offer any alternatives. I have a family member willing to contribute 150-250k at 4% interest only for 7 years to go toward the purchase to help out and I'm just looking for creative ways to be able to take advantage of that.

     Are you trying to borrow 100% of the purchase price between your two loans? 


     No, we would be bringing some money to the table for down payment, closing costs, etc.. 


    The combined loan to value (CLTV) has to be no more then 95% for most programs. CLTV means all loans on the property. So, as long as you have at least 5% down AND the second lien meets these requirements Fannie Mae second mortgage requirements  you should be able to do what you are looking to do. 

    Hurst Real Estate, INC4.989 Reviews
    WebsiteView Page
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