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Closed-End Second Mortgages

Closed-End Second Mortgages

Closed-End Second Loans offer homeowners a strategic way to access their equity without refinancing their existing first mortgage. This is especially useful for borrowers who secured a low-rate first mortgage and want to preserve it while unlocking cash for renovations, consolidating debt, or handling large expenses.

These second-lien mortgages are structured as fixed-term, lump-sum loans, providing predictable payments and a clearly defined payoff timeline. Borrowers who prefer stability over revolving credit lines like HELOCs often choose this product.

If you’re exploring alternative mortgage solutions that work around your existing loan terms, this could be the right fit.

Min FICO: 680 Max LTV: 90%

Why Borrowers Choose Our Closed-End Second Mortgage Program

  • Access up to $750,000 in equity without refinancing

  • Retain your low-rate first mortgage

  • Available for primary homes, second homes, and investment properties

  • Multiple documentation options: Full Doc, Bank Statement, P&L only, and DSCR

  • Fixed-rate options for 10, 15, 20, or 30 years

  • Up to 90% Combined Loan-to-Value (CLTV) allowed

  • No HELOC-style draw period—just a straightforward loan with a consistent repayment plan

Still have questions? Speak to our lending experts for guidance based on your equity position.

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Program Highlights

  • Loan Amount: $150,000–$750,000

  • CLTV: Up to 90%, with a maximum combined loan amount of $3.5 million

  • Documentation Options: Full Doc, Bank Statements, P&L, WVOE, DSCR

  • Occupancy: Primary residence, second home, or investment property

  • Terms: 10, 15, 20, or 30-year fixed-rate options

  • Appraisal: For 1-unit SFRs with loan amounts ≤$250,000, a 2055 exterior appraisal + AVM may be used

  • Seasoning: 4 years required on prior housing events

  • Debt-to-Income (DTI): Up to 50%, depending on LTV

Frequently Asked Questions (FAQs)

1. What is a closed-end second mortgage?

A closed-end second mortgage is a fixed-term loan secured by your property’s equity. Unlike a refinance, it doesn’t affect your current mortgage—making it perfect for borrowers who want to keep their original interest rate.

2. Why would I choose this over a cash-out refinance?

If your first mortgage has a favorable rate, a closed-end second loan lets you pull equity without losing that rate. It’s an ideal choice when rates have risen since your original loan.

3. How is this different from a HELOC?

A HELOC is a revolving credit line, while a closed-end second loan provides a one-time lump sum with fixed monthly payments and term. It’s often preferred by borrowers who want rate stability and budget certainty.

4. Can I use this loan for investment properties or vacation homes?

Yes. These second lien loans are available for investment properties, second homes, and owner-occupied residences—giving investors a flexible tool for property improvements or reinvestment.

5. What are the LTV and CLTV limits?

Depending on your credit and documentation, you may qualify for up to 90% CLTV across both mortgages. This makes it one of the more aggressive home equity options in today’s market.

Use Your Home’s Equity—Without Giving Up Your First Mortgage

With flexible options, competitive loan amounts, and the ability to keep your existing low-rate first mortgage intact, our closed-end second mortgage program is one of the best ways to access cash without refinancing.

Get in touch with us today to review your options and calculate your equity potential.