DSCR Closed-End Second Lien

A Second Mortgage for Rental Property Owners

A DSCR 2nd Lien is a closed-end second mortgage designed for rental property investors, allowing them to leverage the equity in their investment properties without refinancing their first mortgage. This program is ideal for real estate investors seeking to access cash for property improvements, portfolio expansion, or other investment opportunities. Our DSCR 2nd Lien program provides a flexible solution for credit-worthy investors, using the property’s cash flow — rather than personal income — to qualify, making it a powerful tool for building wealth through real estate.

DSCR Loan Calculator

700

Min Fico

(Up to 70% CLTV)

75%

Max CLTV

(Minimum 720 FICO)

Loans up to

$350,000

with a minimum of $100,000

Minimum

1.2

DSCR ratio

Lump-sum payment;

20 year fixed terms

Borrower must document minimum

2 years

of managing income producing investment properties

  • No income or employment required; qualifications based on property cash flow
  • Only warrantable condos qualify under current guidelines
  • Investment properties only
  • Long-term rental properties only
  • Full appraisal required
  • No restrictions on how borrowers can use funds
  • Loan Features: Adjustable-Rate Mortgage (ARM), AirDnA, Automated Rental Income AVM, Rental AVM, Appraisal Waiver

FAQ's

A DSCR Closed-End Second Lien is a second mortgage for investment property that qualifies based on rental cash flow rather than borrower income.
A minimum Debt Service Coverage Ratio of 1.2 is typically required, subject to program guidelines.
Long-term rental investment properties, including warrantable condominiums, may qualify.
Borrowers must document at least two years of experience managing income-producing rental properties.
The DSCR Closed-End Second Lien provides a lump-sum payout at closing for reinvestment, acquisition, or portfolio expansion.