What is a second lien?
When you own a rental property with a mortgage on it, the lender holds the first lien — the first claim on the property if it is ever sold or foreclosed. A second lien is a second loan recorded behind it, secured by the equity between your first mortgage balance and the property's value.
That junior position is why it matters to investors: you can pull $50,000 to $1,000,000 of equity out of a rental without refinancing the low-rate first mortgage already on it. The first note keeps its rate and term; the second lien stands entirely on its own.
- No first-mortgage refinance
- First note's rate stays untouched
- $50,000 – $1,000,000 second liens
- $0 origination & broker fees
The dual-zero-fee promise
Zero origination fees and zero broker fees on every second lien. You pay third-party costs only — valuation, title and recording.
Second mortgage vs HELOC
Both sit behind your first mortgage. The difference is how you take the money out.
Second mortgage (closed-end)
- One-time lump sum at closing
- Fixed repayment schedule
- Best for a known need — a down payment, renovation or partner buyout
- Interest accrues on the full amount from day one
HELOC (revolving line)
- 5-year interest-only draw period
- Borrow, repay and redraw during the draw
- Best for staged projects or uncertain timing
- Interest accrues only on the balance drawn
What they share
- Both sit behind your existing first mortgage
- Your first note's rate and term stay untouched
- Same collateral, same CLTV bands, same income tracks
- Zero origination fees and zero broker fees on either structure
Want the full line structure? See the investment property HELOC guide.
Underwriting rules
The same guideline matrix the calculator runs on. Meet one of the two income tracks and stay inside your CLTV band.
Combined loan-to-value
- Up to 75% CLTV at 720+ FICO through $500,000
- Up to 70% CLTV at 700–719 FICO through $500,000
- Up to 65% CLTV from $500,001 to $1,000,000
DSCR rental track
- 1.10x minimum coverage on gross market rent
- 720+ FICO required
- 70% CLTV maximum through $500,000
- No tax returns and no personal DTI calculation
12-month bank statement track
- 700 minimum FICO
- Personal or business deposits, 12 months
- 50% expense factor on business accounts, 0% on personal
- DTI capped at 50%
Property & structure
- Investment and rental properties only
- Personal name or LLC vesting accepted
- AVM valuation where eligible
- Interest-only payments during the 5-year draw on lines
Guidelines are summarized for estimating and subject to full underwriting, valuation and index pricing at lock. Not a commitment to lend.
Frequently asked questions
Still have questions? Get sized first.
Send your property value, first-lien balance, credit tier and income basis. You get sizing and a next step back — no credit pull to start, and no fees to find out.