Are you in the market for a mortgage but finding it difficult to qualify with conventional lenders? If so, you might want to consider a bundle mortgage, particularly one offered by MortgagePRO Ltd. Bundle mortgages, also known as piggyback mortgages, combine a first and second mortgage on the same property, providing financing solutions for those with less-than-perfect credit or other qualifying issues.

Here’s a closer look at bundle mortgages and the pros and cons associated with them, as well as how MortgagePRO Ltd’s bundle mortgage products can help you secure the financing you need.

Understanding Bundle Mortgages

Bundle mortgages are a type of financing arrangement where a borrower takes out two mortgages simultaneously on the same property. The first mortgage typically covers 50-75% of the property’s value and comes with lower interest rates and fees. MortgagePRO Ltd. offers competitive rates and a less rigorous qualification process for this portion of the mortgage, making it accessible to borrowers with not so good credit.

To achieve a higher loan-to-value (LTV) ratio of 80-85%, MortgagePRO Ltd. tops up the first mortgage with a Private Lender Inc. second mortgage. These second mortgages, sourced from Private Lender Inc.’s own funds or from it’s private individual investors, come with higher interest rates but are available to borrowers with less-than-perfect credit and with a relatively straightforward qualification process. Rates and fees for the second mortgage depend on factors such as the borrower’s credit score and income, but not as disqualifying factor.

It’s important to note that the these type of mortgages typically have a shorter term, usually one year. However, MortgagePRO Ltd. mortgage broker and all agents work diligently to address any disqualifying issues that may have prevented borrowers from obtaining a prime rate mortgage from traditional lenders. Their goal is to help borrowers improve their financial situation and transition to a lender offering the best rates and mortgage products tailored to their individual needs. All during the 12 months initial term.

Pros and Cons of Bundle Mortgages

Pros:

1. Higher Loan-to-Value Ratio: Bundle mortgages allow borrowers to finance a larger portion of the property’s value without perfect credit and huge income.
2. Flexible Qualification Criteria: MortgagePRO Ltd. offers bundle mortgages with less focus on credit and issues that may have prevented qualification with conventional lenders.
3. Competitive Rates: While rates and fees for both mortgages may be higher, the overall financing package from MortgagePRO Ltd. remains competitive, especially for borrowers with less than perfect credit.

Cons:

1. Higher Total Monthly Payments: Taking out two mortgages means higher monthly payments compared to a single mortgage.
2. Higher Interest Rates for Second Mortgage: The second mortgage typically comes with higher interest rates, increasing the overall cost of borrowing.
3. Shorter Loan Terms: Second mortgages often have shorter terms, requiring borrowers to refinance or pay off the loan at the end of term a year. However renewals are also offered with a fee. This enables us to continue our diligence to return borrowers to bankable position.

In conclusion, bundle mortgages from MortgagePRO Ltd. offer a viable financing solution for borrowers who may not qualify with conventional lenders due to credit issues or other factors. While there are pros and cons to consider, MortgagePRO Ltd. MortgagePROS are dedicated to helping borrowers navigate the process and secure the best mortgage product for their individual needs. If you’re considering a bundle mortgage, reach out to MortgagePRO Ltd. to explore your options and find the right financing solution for you.

We are available Also by phone: 403-253-2022 as well as direct email: [email protected]