Second Home Loans & Mortgages

A second mortgage loan is a financing option that allows you to borrow against the existing equity in your property without disturbing your first mortgage. It’s secured by the same real estate asset, but in a second lien position, meaning it would be repaid after the first mortgage if the property were sold or foreclosed. Second mortgages are commonly used by real estate investors and property owners who want to unlock capital without refinancing their original loan. This type of loan can provide quick liquidity for home improvements, expanding your short-term rental portfolio, or handling unexpected expenses—all while keeping your existing mortgage rate intact.

While both financing methods help you access the equity in your home or investment property, they operate very differently. A cash-out refinance replaces your current mortgage with a completely new one, which means you may lose favorable interest rates or terms. A second mortgage, on the other hand, leaves your first mortgage untouched and simply adds a second loan on top. This is especially beneficial in today’s market where many investors have locked in low fixed-rate mortgages. Second mortgage loans give you the flexibility to access funds without resetting the clock on your first mortgage or incurring unnecessary closing costs on the entire loan amount.

Yes, and it’s actually one of the most strategic ways to do so. Many experienced investors leverage a second mortgage loan to pull equity from an existing high-performing property and reinvest it into a new opportunity—whether that’s a vacation rental, term rental, or even a small multifamily asset. Instead of draining your cash reserves, a second mortgage allows you to put your property’s existing equity to work, funding a down payment, renovation project, or even a complete purchase if combined with other financing. It’s a powerful method to scale your real estate portfolio while keeping your financial position liquid.

Our second mortgage programs are designed to support a variety of real estate assets. Eligible property types include single-family homes, condos, townhomes, 2–4 unit multifamily residences, and even mixed-use or commercial-residential blends on a case-by-case basis. We also offer second mortgage solutions for short-term rental properties that are actively generating income. Whether the property is owner-occupied, a second home, or a full-time STR, our lending programs are tailored to fit your investment strategy and provide access to the equity you’ve built over time.

The amount you can borrow depends on several factors, including the current market value of your property, your existing loan balance, and your combined loan-to-value (CLTV) ratio. In most cases, lenders allow second mortgages up to 85% CLTV, although more conservative limits may apply depending on the property type or credit profile. For example, if your home is worth $600,000 and you owe $300,000 on the first mortgage, you may be eligible to borrow up to $210,000 on a second mortgage (for a total of $510,000 combined debt). Our team will assess your financials, property type, and goals to structure a loan that meets your needs.

We offer flexible loan terms to match your short- and long-term objectives. Second mortgages are available with amortization periods of 10, 15, 20, or 30 years, and we also offer interest-only options for investors focused on cash flow. Borrowers can choose from fixed-rate loans, which offer predictable payments, or adjustable-rate loans (ARMs) that may provide a lower introductory rate. This flexibility allows you to structure your loan around your investment strategy—whether you plan to flip a property, hold it as a short-term rental, or use the capital for a different real estate project entirely.

There are several key benefits. First, you keep your first mortgage intact, which is especially valuable if you’ve secured a low interest rate in recent years. Second mortgages are also faster to close and generally have fewer upfront costs than full refinances. For short-term rental owners, a second mortgage can provide fast access to capital for furnishings, repairs, or upgrades that improve nightly rates and booking velocity. Some investors use second mortgage funds for marketing, photography, or launching new STR listings. It’s a way to scale intelligently without liquidating assets or sacrificing cash flow from existing operations.

Yes. While second mortgage underwriting is typically more flexible than a first mortgage, lenders still evaluate your credit score, income, and debt-to-income (DTI) ratio. Most programs require a credit score of 660 or higher, although exceptions exist for borrowers with strong equity and investment history. You'll also need to demonstrate sufficient income—either through W-2 pay, 1099s, rental income, or other verified sources. For real estate investors with multiple properties, our team can work with portfolio-level documentation and even offer creative solutions if your income is non-traditional or seasonal.