Closed-End Second Mortgage
A Second Mortgage for Self-Employed and Real Estate Investors
Angel Oak’s Stand-Alone Second Mortgage program is designed for self-employed borrowers and real estate investors who can qualify using 12-24 months of business bank statements; full doc option also available. These loans enable borrowers to tap into their home’s equity while retaining their first mortgage. With this product, borrowers receive a lump-sum payment and there are no restrictions on how borrowers can use the funds.
700
Min Fico
(Up to 80% CLTV, Varies by income doc type)
85%
Max LTV
(Minimum 720 FICO, Varies by income doc type)
Loans up to
$750,000
(Business Bank Statements, P&L, and 1099)
12 or 24 months’
(Business Bank Statements)
Rates are
30-year fixed, 20-year fixed, 15-year, or 10-year fixed
Up to
50% DTI
Cash-out or rate-term refinance
Owner-occupied, second homes, and investment properties
Bank Statements – Qualified deposits divided by 12 or 24 months
- 12/24 Months Business Bank Statements. Ownership is 25%.
- 12/24 Months Personal Bank Statements. Maximum $500,000 line amount. Ownership is 25%.
P&L – 12 or 24 Month (bank statement support not required)
- Min Score 740; Max CLTV/HCLTV 80%; Min 2 yrs self-employed and same line of work; and minimum 50% owner of the business.
1099 – 12 or 24 Months
- Total 1099 plus YTD earnings, less business expense ratio, annualized
- Min Score 720; Max CLTV/HCLTV 80%. Min 2 yrs self-employed and same line of work; minimum 50% owner of the business.
- 12 Month 1099 – Max CLTV/HCLTV 75%
Full doc (2 years’ tax returns and YTD P&L, or 2 years W-2’s with YTD pay stubs for non-self-employed)
Can never have had a foreclosure, short sale, modification, or deed-in-lieu; 60 months’ seasoning from bankruptcy required
Please contact an Angel Oak Account Executive for complete qualification
We currently offer business-purpose loans for investment properties through approved clients, even if they’re not licensed in the subject property’s state.
Unlicensed states: AL, AR, CA*, CO, CT, FL, GA, IN, LA, MA, MO, MT, NC, NM, OH, OK, PA, SC, TN, TX*, UT, WA, WI
*California (CA): The originator’s company and the originator’s branch must hold active CA licenses. The originator is not required to hold an individual license.
*Texas (TX): HELOC transactions are not eligible.
* Owner-occupied program is not available in TX
Business Purpose Disclosure
FAQ’s
What is the benefit to originators who use Non-QM loan products?
Originators who utilize Non-QM offer a service that their competition may not offer. They become an expert and go-to for the Non-QM borrower. The benefit is increased referrals and business growth despite changes in the market. Continue to increase your volume each year regardless of fluctuating interest rates, tighter Agency guidelines, and a slowing refinance market.
Bank Statement Questionnaire
Our bank statement questionnaire collects some basic information on your financial history and expenses. This information will be used to help assess financial stability.
Blended Rate Calculator
Angel Oak’s blended rate loan calculator assists borrowers and brokers in determining the average interest rate and total payment associated with obtaining multiple mortgage loans on a single property.