Ditech Financial released its new Closed End Home Equity product on Wednesday, making it available to the correspondent banking community.

The new product was created to work with a Ditech new first mortgage.

Together, it allows borrowers – especially first-time homebuyers who may not have a traditional 20% down payment – to avoid mortgage insurance premiums by keeping mortgage balances at or below conforming loan limits, and offering possible tax deductions and benefits.

“Ditech realizes that no two home-buying experiences are alike, and therefore strives to tailor our options to the individual customer,” said John Davis, senior vice president, national sales manager for correspondent lending at Ditech.

“This Home Equity product offers an excellent added layer to those options, rounding out a broad range of solutions with a first-rate delivery platform,” said Davis.

Features of the product include:

  • Purchase-money piggyback or credit-only piggyback
  • Single disbursements
  • Loan amount in $100 increments
  • Closed end, fixed rate and fully amortizing
  • 10-, 15- or 20-year terms
  • Loan amounts as low as $20,000
  • FICO as low as 680 permitted
  • Debt ratio up to 43% allowed