CLOSED-END SECOND MORTGAGE

What is a Closed-End Second?

A Closed-End Second Mortgage is a fixed-rate, fully amortizing second lien placed behind a first mortgage that lets homeowners access cash from equity without refinancing the first; it’s ideal for borrowers with 6+ months ownership seeking a stand-alone cash-out on primary, second home, or investment properties.

Highlights:

DSCR:
• Min. 1.00+ DSCR
• Up to 75% CLTV (Min. 720 FICO)
• Up to 70% CLTV (Min. 700 FICO)
• Loan from $150K to $350K
• Qualify on property cash-flow—no personal income docs
• Ideal for 1–4 unit rentals, short-term or long-term

P&L Statement
• 12-month P&L up to 75% CLTV
• Completed by CPA or EA
• Expense ratio must be reasonable for the industry
• Primary residence only

Bank Statements
• 12-months of business bank statements
• 12-months of Personal + 2-months of business

1099
• 1-Year 1099
• Fixed Expense Ratio of 10%
• YTD documentation to support continued receipt of income

Full-Doc
Self-Employed: 1-year personal and business (if applicable) Tax returns, YTD P&L, IRS Form 4506-C
Wage/Salary: 1-year Paystubs, W-2, IRS Forms 4506-C, Verbal VOE