© LOAN PROGRAMS PROGRAM 08 OF 09
SECOND & THIRD MORTGAGES
Second and third lien position loans behind a first mortgage you want to keep: equity out without refinancing a rate you like, on a term and structure quoted per deal.
- TERMS
© SECOND & THIRD MORTGAGES 12-36 MO · BUSINESS PURPOSE
HARD MONEY SECOND AND THIRD MORTGAGES
A second mortgage is recorded behind your existing first and secured by the equity above it. It is the answer when the first loan carries a rate worth keeping, when a cash-out refinance would reset the whole balance, or when a project needs capital the first lender will not add. Loan Goat's loan documents cover first, second, third and fourth lien positions. Terms are quoted on the property and the exit; the structures below describe how the loan is built, not a published price.
© THE STRUCTURE TERMS QUOTED PER DEAL
TWO WAYS TO STRUCTURE A SECOND
The concepts below are the structures Loan Goat can document; rates, loan sizes, CLTV and terms are quoted on the Letter of Intent for each property.
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FIXED TERM SECOND MORTGAGE
A single advance recorded in second position, repaid at a set maturity with interest during the term. It pulls equity from an investment property for another acquisition, a rehab budget or a business need while the first mortgage stays untouched.
- Business purpose use of funds
- Secured by a second deed of trust behind the existing first
- Interest during the term, principal at maturity or on sale
- Terms quoted on the equity, the first mortgage and the exit
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BUSINESS-PURPOSE LINE OF CREDIT
A revolving line secured by a second deed of trust: draw, repay and draw again up to the limit, paying interest on the drawn balance. Suited to investors who buy and sell often and want capital on standby rather than a loan sized to one project. Availability and terms are confirmed on enquiry.
- Revolving draws against the equity above the first
- Interest on the drawn balance only
- Capital on standby for the next acquisition
- Structure confirmed per property and per borrower
| Item | Business purposeInvestment property or business use | Consumer purposePersonal or household use |
|---|---|---|
| Use of funds | Investment property or business use | Personal, family or household use |
| Typical collateral | A rental, a commercial property or land | The borrower's own home |
| Borrower | An individual or an entity such as an LLC, corporation or trust | An individual |
| Underwriting | The property, the equity and the exit | Ability to repay, with income documented |
| Documentation | Application, schedule of real estate owned, proof of funds, title | Income and asset verification under consumer rules |
| Rules that apply | Business lending law and state licensing | Federal and state consumer protection law |
| Timing | The four-step process | Consumer disclosure and waiting periods add time |
| Read more | Business purpose second mortgages guide | Consumer purpose second mortgages guide |
WHO IT IS FOR
WHO IT IS FOR
Owners with equity above a first mortgage they do not want to disturb, and a use of funds that fits a business purpose or, where the rules allow, a consumer purpose.
- Investment property owners who want to keep a low-rate first mortgage in place
- Investors funding a purchase, a rehab or a business need from equity in another property
- Files where the equity above the first mortgage is the security and the exit is a sale or a refinance
- Whether a consumer-purpose second is available is confirmed on enquiry
OUR PROCESS
HOW IT CLOSES
Four steps, with the first mortgage note and a current valuation joining the documentation step so the combined position is clear before terms are issued.
- Complete your application
- Submit required documentation
- Sign your Letter of Intent
- We process and close your loan in 5-7 days
© SECOND & THIRD MORTGAGES
Second and third lien position loans behind an existing first mortgage.
PUBLISHED TERMS
© QUESTIONS 6 ANSWERS
SECOND MORTGAGE QUESTIONS
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A hard money second mortgage is a loan recorded behind an existing first mortgage, secured by the equity above the first. It lets an owner pull equity without refinancing a first loan that carries a good rate. Loan Goat's loan documents cover first, second, third and fourth lien positions.
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It depends on what the money is for, not on the property: a second on a rental to fund another investment is business purpose; a second on your own home for household use is consumer purpose, with consumer rules attached. Tell us the use of funds and we route it correctly.
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The combined loan-to-value (the first plus the second against the property value) is set per deal on the equity, the first mortgage terms and the exit. Ask for terms on your property; the figure is quoted on the Letter of Intent.
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Investors do use equity from one property to fund the down payment on another, with a second mortgage or a cross-collateral structure. Whether it fits depends on the equity, the first lender's terms and how the new purchase is financed; we look at both deals together.
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A hard money HELOC is a revolving line secured by a second deed of trust: you draw, repay and draw again up to the limit, paying interest on the drawn balance. Availability and terms depend on the property and the purpose of the funds; ask for the current structure.
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With a private lender the approval turns on equity: enough value above the first mortgage to secure the second at an acceptable combined LTV, plus an exit. It is faster and lighter on documentation than a bank second, and credit is one input rather than the decision.
© LOAN REQUEST 2 MINUTES
SUBMIT A LOAN REQUEST
The loan information form with this program already selected. A lending advisor from our firm will reach out. Or just give us a call now: (619) 617-2797.