Closed-End Second (CES) — Investment Property Equity

At a glance

A closed-end second lien for non-owner-occupied investment property. Pull equity behind a low-rate first mortgage — stand-alone or piggyback — with Full Doc, Bank Statement/1099, P&L Only, or DSCR qualification. Loan amounts run $50,000 to $750,000, combined LTV goes to 80%, and combined lien balances are allowed up to $3.5M at 80% CLTV or $4M at 75% CLTV.

Program highlights

• Non-owner-occupied (investment) property only
• Loan amounts $50,000 – $750,000
• Up to 80% CLTV (75% CLTV on the largest lien balances)
• Max combined lien balance $3,500,000 at 80% CLTV / $4,000,000 at 75% CLTV
• Doc types: Full Doc (12 or 24 mo), Bank Statement/1099 (12 or 24 mo), P&L Only (12 mo), DSCR (min 1.00)
• Max DTI 50% on income-documented options
• Credit score tiers 660 / 680 / 700 / 720
• No reserves required on stand-alone CES; piggyback purchases require a copy of assets for the 1st lien
• Stand-alone CES may be used to augment qualifying income on all doc types except DSCR (not a stand-alone income doc type)
• Full appraisal required (1004 / 1025 / 1073)
• DSCR option: minimum 1-year prepayment penalty required where allowable by state
• Properties listed for sale in the last 6 months are not eligible
• US Citizens, Permanent Resident Aliens, and Non-Permanent Resident Aliens with US credit (NPRA not eligible for DSCR)

How funding works

1. Send the property address, first-lien balance, and estimated value
2. We confirm the CLTV tier and the best doc type for your file
3. Full appraisal ordered; income or DSCR docs uploaded to a secure portal
4. Clear to close — your first mortgage stays exactly where it is

Worked scenarios

Cash-out behind a 3.5% first — $600k rental

Borrower: Full Doc investor, FICO 720, first lien $300k

Property value: $600,000 · Loan amount: $180,000

Outcome: 80% CLTV supports a $180k second while the low-rate first mortgage stays untouched.

DSCR second on a stabilized duplex

Borrower: LLC borrower, DSCR 1.10, FICO 700

Property value: $750,000 · Loan amount: $187,500

Outcome: 70% CLTV DSCR tier funds the equity draw with a 1-year prepay where state-allowed.

Why this program

Refinancing a whole first mortgage to access equity can cost investors several points of rate. A closed-end second leaves the first lien in place and prices only the new money.

CLTV caps step down as credit score and loan size move — 80% is reserved for the strongest Full Doc tiers, with DSCR and P&L Only sitting several points lower.

Because it is closed-end, the full amount funds at closing with a fixed payment — unlike a HELOC, there is no draw period or variable rate to manage.

Frequently asked

Does this replace my existing mortgage?

No. A closed-end second sits behind your current first lien, so a low-rate first mortgage stays exactly as it is.

What is the maximum I can borrow?

$750,000, subject to an 80% combined LTV and a combined lien balance cap of $3.5M at 80% CLTV or $4M at 75% CLTV.

Can I qualify without tax returns?

Yes — Bank Statement/1099 (12 or 24 months), P&L Only (12 months), and DSCR (minimum 1.00) options are all available.

Is an appraisal required?

Yes, a full appraisal (1004, 1025, or 1073 depending on property type) is required on every file.

Can I use it on my primary residence?

No. This program is non-owner-occupied investment property only.