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Second Mortgage Loan Benefits & Guidelines

The term “second mortgage” can be used to refer to home equity loans, home equity lines of credit (HELOCs), and piggyback loans. All of these loans are taken out on a property that is already mortgaged or is being financed (purchased).

Home Equity Advantage Loan℠ for debt consolidation

Equity is an asset, therefore it’s possible to use it as collateral and turn it into the money you need.

The Home Equity Advantage Loan℠ for debt consolidation from AAFMAA Mortgage Services LLC (AMS) enables qualified homeowners and buyers to tap into their home equity.

If you have a low-interest rate on your first mortgage and need money for home improvements, debt consolidation, or other major expenditures or investments, you can get the money you need without having to refinance your first mortgage.

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Home Equity Advantage Loan℠ for purchase

If you’re using a conventional mortgage to buy a home and want to avoid paying private mortgage insurance every month, you’ll need a 20% down payment.

Consider the Home Equity Advantage LoanSM for purchase from AAFMAA Mortgage Services LLC (AMS), also known as a ‘piggyback’ loan – so called because you take it out at the same time as your primary mortgage to boost your down payment.

If you need another 10% (of the purchase price) to put 20% down, you can take out a Home Equity Advantage LoanSM for that amount, making it an “80-20” loan since 80% of your financing is in your first mortgage and 20% will be the ‘piggyback’ loan.

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Second Mortgage Guidelines

  • Loan amounts from $25,000 to $250,000
  • Terms of 10, 15, or 20 years
  • Up to 100% of your homes value (including the first mortgage balance)
  • No prepayment penalty
  • Low closing costs
  • Quick approval and funding process

Not sure if a second mortgage is right for you?

Inquire today and we’ll connect you with a Military Mortgage Advisor who can help you explore your options. Or, give us a call at 844-422-3622.

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Today's Mortgage Rates

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Disclaimer: these are sample rates and terms based on daily pricing that fluctuates and is subject to change and credit approval. Parameters: 720+ FICO, Single-Family Residence, $300,000 loan amount, State = NC, County = Wake, Discount Points = 2, admin fee = $1149. For VA Home Loan, assume a 2.3% VA Funding Fee.