Rental-property second mortgages
DSCR second mortgage loans for rental-property equity
Access rental-property equity with a separate loan while keeping a qualifying first mortgage in place. We review the property, current debt, rental income and your intended use of funds before discussing available terms.
Requested loan amount
Requests from approximately $50,000 to $1,000,000 are screened for review. Actual availability depends on the current program, credit, property and total mortgage debt.
Combined leverage
The available loan amount depends on how much total mortgage debt the property can support. An 80% combined loan-to-value illustration is not an approved limit; property, credit and program requirements can reduce the amount.
Combined DSCR
The first- and second-lien payments are both included with taxes, insurance, HOA and other applicable property expenses.
What helps the initial review
- Non-owner-occupied investment property
- Existing institutional first mortgage in good standing
- Six-plus months of ownership and no recent sale listing
- Single-family, PUD, townhome, eligible condo or 2–4 unit property
- Documentable lease or approved rental-income support
- Credit and mortgage history that meet current program requirements
- Business or investment purpose for the proceeds
Important: Program requirements change. A specialist must confirm the current loan options, property requirements and applicable terms before you rely on a proposed structure.
Closed-end second mortgage, not a revolving line
A closed-end second mortgage provides a defined loan amount. It is different from a HELOC, which is a line of credit with its own draw and repayment terms. This page focuses on second-mortgage review; an existing HELOC is treated as a separate lien that must be disclosed.
How the rental-property review works
The property’s rental income is compared with the qualifying obligations of the first and proposed second mortgages, plus applicable taxes, insurance and association dues. An estimate is useful for a first conversation, but the final rental figure and qualifying payments must be supported by the selected program.
Other equity inquiries are welcome
A primary residence, second home or personal-purpose request follows a different product review from business-purpose DSCR. You can submit it through the same form. Continuing the form does not establish eligibility, state authorization or a commitment to lend.