Residential lenders that will lend in first position @ 100%+ CLTV

5 Replies

For my primary residence in Nevada, I have a first mortgage with a main street lender, a HELOC second, and an SBA commercial loan lien as a third. The commercial lien is to satisfy SBA lending collateral requirements (i.e., they take all available collateral). With the third lien counted, there is no equity in the property. The first lien is about a third of the market value of the home.

The second and third liens will subordinate to the first lien, but no conventional lenders seem interested in this scenario due to the combined loan-to-value exceeding their guidelines, even though they'd be in first position just like the current lender is now.

I am seeking to refi to lower the rate, no cash out.  Does anyone know of any lender that may be able to work with such a scenario?  Thanks. 


Jonas,

There are a lot of lender that will do a "rate reduction" refinance so long as the secondary lien holders offer the subordination agreement. Second and 3rd party lien holders have to sign and accept a subordination agreement sent by the bank/lender going to hold the first lien. So if there is a tangible benefit to reducing the rate most lien holders will subordinate as long as there is no cash out or debt consolidation that increases their CLTV position.

Just be careful who you go with because there are some banks/lenders not taking those loans...  

thats interesting that a first lender with 33% LTV would worry about total loans.

Although I understand why for private lenders even with that ARV it precludes a DIL in the case of a water landing.

Maybe the banks feel the same way.. there has to be a lender out there that will do that for you though I would think.

Agree, logically it's tough for them to lose money, but a lot of them have guidelines and it's an odd situation that doesn't fit their guidelines, which usually include a CLTV limit. I'll keep looking, thanks.

Originally posted by @Jonas Grant :

Agree, logically it's tough for them to lose money, but a lot of them have guidelines and it's an odd situation that doesn't fit their guidelines, which usually include a CLTV limit. I'll keep looking, thanks.

Have you tried your local community bank for a portfolio loan wont be as good of rate but might be better ?