Overview:
Fountain Mortgage offers a Portfolio Closed End Second program designed for borrowers seeking alternative income documentation solutions. This loan option supports scenarios where traditional underwriting falls short, providing flexibility for qualified homeowners and investors.
Portfolio Closed End Second Loan Program
Eligible Documentation Options
- Alt Doc Second Mortgage – expanded qualifying criteria for borrowers outside standard full-doc requirements.
- 1099 Only Second Mortgage – designed for self-employed professionals with 1099 income.
- Bank Statement Second Mortgage – allows income verification through 12–24 months of bank deposits.
- P&L Only Second Mortgage – borrower-prepared or CPA-prepared profit and loss statements may be used in lieu of tax returns.
- WVOE (Written Verification of Employment) – accepted as an alternative to full income documentation.
Loan Parameters & Underwriter Requirements
- Loan Amounts: $150,000 – $750,000 (up to $3.5MM combined liens).
- Max CLTV: Up to 90% depending on FICO and documentation type.
- Terms: Fixed-rate options of 10, 15, 20, and 30 years.
- Eligible Borrowers: U.S. citizens, permanent resident aliens, certain trusts, and non-occupant co-borrowers (when also on the first lien).
- Property Types: SFR, 2–4 units, condos, PUDs, townhomes (short-term rentals ineligible).
Additional Highlights
- Minimum FICO: 680–720 depending on loan size and occupancy.
- DSCR ≥ 1.0 required on investor loans.
- Prepayment penalties: Not permitted on primary residences or second homes.
- Full appraisal required above $250,000 or >80% CLTV.
Available in the Following States:
Alabama, Arizona, California, Colorado, Connecticut, Delaware, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kentucky, Massachusetts, Minnesota, Mississippi, Missouri, Nevada, New Hampshire, New Jersey, New Mexico, North Carolina, Oklahoma, Oregon, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, and Washington.