Closed End Second Mortgages for Unlocking Home Equity
Flexible access to home equity without disturbing your first mortgage
-
Series 1
-
Series 3
-
Series 5
-
-
Seconds
About program
Closed End Second Loans enable you to tap into your home’s equity with a second-lien mortgage. These loans often feature fixed terms and rates, giving you predictable payments over the life of the loan. This program caters to borrowers who need funds for renovations, debt consolidation, or other financial goals - all while keeping their existing first mortgage intact. With a minimum FICO of 660 and up to 90% combined loan-to-value (CLTV), this product offers a competitive way to leverage your home’s equity. Cash-out can even be used to satisfy reserve requirements.
Key features
- Cash-out used for reserves
- Loan amounts up to $500k
- Loan amounts up to $750k case by case
- Combined loan amount up to $5m
- Standard doc, bank statements, P&L, WVOE, & 1099 income types
- Primary, second homes, and investment
- AVM only for loan amounts <$400k
- Non-permanent residents allowed
Required to Disclose
Credit report
(cannot be older than 60 days) - must be merged into the LOS.
Borrowers' ID
(passport or driver's license).
Purchase contract
(if applicable)
Complete loan application
(including income & employment)
Submission form completed
Copy of 1st lien mortgage statement
Income documents corresponding with the qualifying income type.
Required to Underwrite
(in addition to above)
Credit report
(cannot be older than 60 days) - must be merged into the LOS.
Borrowers' ID
(passport or driver's license).
Purchase contract
(if applicable)
Complete loan application
(including income & employment)
Submission form completed
Copy of 1st lien mortgage statement
Income documents corresponding with the qualifying income type.
Thank you!
We’ll Connect with You Soon
Oops, Something Went Wrong!
Please try refreshing the page or come back later.
If the problem persists, contact our support
team for assistance.
Need calculations?
Get quick results
Rapid fire pricing
Experience Lendz Wholesale
Modern programs
Alternative ways to qualify
FAQ
Can cash-out proceeds from a closed-end second lien loan be used to meet reserve requirements?
Yes. With our closed-end second mortgage program, borrowers can use cash-out proceeds from the second lien to satisfy required reserve guidelines. This feature gives mortgage brokers more flexibility when structuring loan scenarios and helping borrowers qualify.
Is a full appraisal required for a closed-end second lien if the loan amount is under $250,000?
Not always. For second lien loan amounts below $250,000, an Automated Valuation Model (AVM) may be acceptable instead of a full appraisal. This option can reduce borrower costs and speed up processing and underwriting.
Can non-permanent resident borrowers qualify for the closed-end second mortgage program?
Yes. Non-permanent resident borrowers are eligible as long as they meet the minimum credit score requirements and all other program guidelines. This helps mortgage brokers offer financing solutions to a broader range of borrowers.
Other programs
