Questions from rental-property investors
DSCR second mortgage FAQ
What is a DSCR second mortgage?
It is a separate closed-end mortgage recorded behind an existing eligible first lien on a rental property. The first mortgage remains in place while the second provides a defined lump sum.
How is DSCR calculated with two liens?
The review compares gross rental income with the qualifying first-lien payment, proposed second-lien payment, property taxes, insurance, HOA and other applicable housing expenses. Both liens matter.
Can I use the property if it is free and clear?
A second lien requires an existing first mortgage. A free-and-clear rental is normally routed to a first-lien DSCR cash-out review instead.
How much can I borrow?
The amount available depends on the property, current liens and selected program. Actual limits depend on credit, property type, first-lien balance, total combined liens, CLTV, DSCR, state and investor program.
Do I need six months of ownership?
Many standalone second-mortgage programs require a minimum ownership period and restrict recent sale listings. Provide your ownership and listing history so the desk can check the current requirements.
Are short-term rentals eligible?
Short-term rental requirements differ by program. Some programs do not accept them; others require documented rental history and additional payment coverage. A specialist must confirm whether your property can be considered.
Will starting the review create a hard credit pull?
No. The initial equity map asks for an estimated credit range. Any later credit authorization must be handled separately through the approved loan process.
Can I submit a primary residence or second-home scenario?
Yes. Every inquiry continues through the form. Eligible non-owner-occupied business-purpose scenarios are reviewed for DSCR second-lien options, while primary residence, second-home, personal-purpose and uncertain scenarios are routed to the appropriate NonQM123 equity or mortgage desk.
Does keeping my HELOC open guarantee a new second mortgage?
No. The balance still affects combined leverage, and title and lender review must determine lien priority. An undrawn HELOC can still require title review.
Is the new loan amount the cash I receive?
Not necessarily. Existing subordinate-lien payoffs and closing costs reduce the cash available from the new loan. Tell the desk when you need a specific cash-in-hand amount.
Can I ask for help without knowing every figure?
Yes. Choose the unknown options or use the shorter request path. The desk can help gather and verify the missing details. Unknown balances are not treated as zero.