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Investor

Closed-End Second (CES) — Investment Property Equity

Tap non-owner-occupied equity to 80% CLTV without touching your first lien.

A closed-end second lien for non-owner-occupied investment property in eligible states. Pull equity behind a low-rate first mortgage — stand-alone or piggyback — with light-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.

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
  • Light-doc options: Bank Statement/1099 (12 or 24 mo), P&L Only (12 mo), or 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
  • Not available in U.S. Territories or MI, NJ, NY, TN, and WV
  • US Citizens, Permanent Resident Aliens, and Non-Permanent Resident Aliens with US credit (NPRA not eligible for DSCR)
Check what I qualify forApply now(817) 482-3900

What we do — and what we don't. Local Loan Store™ specializes in commercial, investor, and non-owner-occupied lending plus secured & unsecured business working capital. We do not originate personal loans or owner-occupied residential mortgages. If your scenario is personal or owner-occupied, we'll happily refer you to a trusted partner who is ready to help — just submit your inquiry and we'll route it to the right desk.

How funding works

  1. 1

    Send the property address, first-lien balance, and estimated value

  2. 2

    We confirm the CLTV tier and the best doc type for your file

  3. 3

    Full appraisal ordered; income or DSCR docs uploaded to a secure portal

  4. 4

    Clear to close — your first mortgage stays exactly where it is

Real borrower scenarios

Worked examples using the program's actual LTV and qualifying rules. Numbers are illustrative — your file determines your final terms.

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

30% LTV

Bank-statement investor, FICO 720, first lien $300k

Financed Down payment
Property value
$600,000
Loan amount
$180,000
Down payment
$420,000
Cash to close (est.)
$426,000

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

DSCR second on a stabilized duplex

25% LTV

LLC borrower, DSCR 1.10, FICO 700

Financed Down payment
Property value
$750,000
Loan amount
$187,500
Down payment
$562,500
Cash to close (est.)
$570,500

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

Max LTV by program

% of value financed at purchase — click a bar to open the program

Max loan amount

USD millions — click a bar to open the program

Indicative rate ranges

Lower band = best-case pricing. Hover for details, click to open the program.

Knowledge & insights

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, documentation path, and loan size move; DSCR and P&L Only tiers may carry lower leverage.

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.

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Did you know?

  • Most investor first mortgages written before 2022 carry rates well below today's market — which is exactly why second-lien equity draws have become the fastest-growing investor product.
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Frequently asked questions

Quick answers about Closed-End Second (CES) — Investment Property Equity. Not seeing your question? Talk to a loan officer below.

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.
Where is the CES program available?
CES is available in eligible U.S. states, but not in U.S. Territories, Michigan, New Jersey, New York, Tennessee, or West Virginia.
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Get matched to Closed-End Second (CES) — Investment Property Equity

Submit your scenario — a loan officer will confirm program fit and indicative pricing within one business day.

By submitting, you agree to be contacted by The Local Loan Store™ by phone, text, or email about your inquiry — including by autodialer or prerecorded voice — even if your number is on a Do Not Call list. Consent is not a condition of credit and message/data rates may apply. You also agree to our Terms of Use, Privacy Policy, E-Sign Consent, and full state & federal application disclosures. We serve urban and rural markets. Applications are not accepted for property or businesses located in CA, OR, ID, NV, UT, MN, SD, MI, NJ, or VA.

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