Min FICO 680 | Up to 90% CLTV

    A closed-end, Stand Alone 2nd Lien, second mortgage offers homeowners the opportunity to leverage their real estate equity while maintaining their low interest rate. With this type of loan, homeowners can receive a lump sum payment of up to 90% of their home’s equity, based on their credit score, income, and other factors.

    • Up to 90% CLTV
    • Min FICO 680
    • Max DTI 50%
    • Min Loan Amount $150,000
    • Max Loan Amount $500,000
    • 10, 15, & 30 Year Fixed
    • Full Doc
    • Alt Doc – Personal Bank Statement | Business Bank Statement | 1099
    • Primary, 2nd Home, & Investment

    A stand-alone second lien mortgage is a type of secondary loan that is taken out after the first mortgage has already been established. It is known as a “second lien” because, in the event of a foreclosure, the first mortgage (primary lien) gets repaid first, and the second lien mortgage is paid only after the first lien is fully satisfied.

    Key Features of a Stand-Alone 2nd Lien Mortgage:

    1. Second Mortgage: This loan is subordinate to the first mortgage, meaning it’s the second in line for repayment if the property is sold or foreclosed on.
    2. Separate from the Primary Mortgage: Unlike a piggyback mortgage (where the second mortgage is taken out simultaneously with the first mortgage), a stand-alone second lien mortgage is taken after the first mortgage is already in place. It is a separate transaction and not linked directly to the primary mortgage loan.
    3. Common Uses:
      • Home Improvement or Renovation: Borrowers may use it to fund home improvements or repairs without refinancing their primary mortgage.
      • Debt Consolidation: Homeowners might take out a second lien mortgage to consolidate other debts, such as credit cards or personal loans, at a potentially lower interest rate.
      • Access to Home Equity: Borrowers can use the equity in their home to obtain additional funds, without refinancing their original mortgage.
    4. Higher Risk for Lenders: Because it’s second in line, a second lien mortgage typically carries higher interest rates than a first mortgage, as the lender is taking on more risk.
    5. Repayment Structure: A second lien mortgage can have different repayment terms and interest rates than the first mortgage. It could be a fixed-rate loan, adjustable-rate loan, or even a line of credit (such as a HELOC).

    In summary, a stand-alone second lien mortgage allows homeowners to borrow against their home’s equity without altering or refinancing their primary mortgage. However, it carries additional risks and usually comes with higher interest rates.