- LOAN PORTAL
Pull equity out of a rental property in second position, behind an existing first-position DSCR loan, without refinancing the low rate you already have locked in. Combined loan-to-value up to 85%, qualified on property cash flow rather than personal income.
Takes less than five minutes. Whether you are a borrower, broker, or connector, our team will size up the scenario and come back with terms.
A DSCR 2nd lien is not a standalone product. It must be recorded in second position behind another first-position DSCR loan that is already in place on the property. If there is no qualifying first-position DSCR loan, this program is not the right fit, and our team will route the scenario to the product that does work.
That single requirement is what makes the structure powerful. Your first mortgage is never touched, never repriced, and never restarted. The second lien simply layers on top of the equity that has already built up behind it.
A second lien rental loan lets an investor borrow against the equity in a cash-flowing rental property while leaving the existing first-position DSCR loan completely intact. Instead of refinancing the entire balance to access capital, you add a second, smaller loan behind it.
Like every DSCR loan, qualification is driven by the property rather than by tax returns or W-2 income. Underwriting looks at the rent the property produces against the total debt service on both liens, so an investor with strong rental cash flow can access equity even when personal income documentation would complicate a conventional request.
The first-position loan stays exactly where it is. If you locked a favorable rate in a lower-rate environment, you keep it rather than surrendering it in a full refinance.
Appreciation and principal paydown create equity that sits idle. A second lien converts that equity into deployable capital for your next acquisition or renovation.
The property carries the loan. We underwrite rental income against combined debt service, with a minimum DSCR of 1.1x on the program.
Investors sometimes hesitate when they see the rate on a second lien, because second-position debt carries a higher rate than first-position debt. That reaction misses the more important number. What matters is the blended cost of all the debt on the property, not the rate on one slice of it.
Because the larger first-position loan keeps its lower rate, the higher rate on the smaller second lien is diluted across the full capital stack. The weighted average lands meaningfully below the second lien rate, and in most cases below what a full cash-out refinance would cost at today’s pricing.
| Position | Balance | Rate | Status |
|---|---|---|---|
| Existing 1st lien DSCR | $240,000 (60% LTV) | 6.25% | Untouched, keeps its original rate |
| New 2nd lien DSCR | $100,000 (25% of value) | 10.50% | New equity draw |
| Combined position | $340,000 (85% CLTV) | 7.50% blended | $100,000 accessed without refinancing |
In this illustration the investor accesses $100,000 in equity, and the blended cost of capital across both liens works out to roughly 7.50%. Refinancing the entire $340,000 into a single new first-position loan would reprice all of the debt, including the $240,000 that is currently sitting at 6.25%. The second lien preserves that advantage. Rates shown here are for explanation only, and actual pricing depends on the scenario, the property, and the capital source we route to.
Combined loan-to-value is the governing constraint on this program. We measure the existing first-position balance plus the new second lien against the value of the property, and that combined figure can go up to 85%.
In practical terms, the lower your current first-position balance, the more equity is available to draw. An investor at 60% LTV on the first lien has room for a second lien of up to 25% of value. An investor already at 80% LTV has considerably less room, and an investor at or above 85% combined has none until the balance amortizes down or the property appreciates further.
A first lien at 55% to 65% of value typically leaves the most usable room under the 85% ceiling and produces the most attractive blended rate.
A first lien in the low to mid seventies still supports a meaningful draw, though the available proceeds shrink as the combined position approaches the ceiling.
This program is designed for rental property investors who want additional capital but have a compelling reason to leave their first-position loan alone.
You financed when pricing was better and refinancing today would raise the cost of every dollar you already borrowed. A second lien protects that position.
You need down payment or acquisition capital for the next property and would rather unlock existing equity than bring outside cash to the table.
You are funding renovations, unit turns, or a co-living conversion and want the improvement capital secured against equity you already own.
| Parameter | Guideline |
|---|---|
| Lien position | Second position only, behind an existing first-position DSCR loan |
| Maximum combined LTV | Up to 85% |
| Loan amount | $30,000 to $500,000 |
| Minimum DSCR | 1.1x |
| Minimum FICO | 680 |
| Amortization | 20, 25, or 30 years |
| Rate lock period | 45 days |
| Occupancy | Non-owner-occupied residential rental property |
| First mortgage | Remains in place and unchanged |
Levine Capital is backed by institutional capital providers and works through correspondent and wholesale channels, so we can match a second-lien scenario to the capital source whose guidelines fit it best.
Complete the Quick Quote with the property, the existing first-position balance and rate, and the rent. It takes under five minutes.
Our team checks combined LTV, rental coverage against both payments, and which capital provider is the right fit.
We come back with the loan amount, rate, amortization, and the blended cost across both liens so you can compare it against a refinance.
Your first mortgage stays untouched, the second lien records behind it, and the proceeds go to work.
No. The DSCR 2nd lien rental loan must sit behind another first-position DSCR loan already recorded on the property. It is not offered as a standalone loan. If your property does not have a qualifying first-position DSCR loan, submit the scenario anyway and our team will point you to the right product.
A cash-out refinance reprices your entire balance at today’s rates. If your existing first-position loan carries a lower rate, refinancing raises the cost of debt you already have on favorable terms. A second lien leaves that loan alone and prices only the new money, which usually produces a lower blended cost across the full capital stack.
Combined loan-to-value can go up to 85%. The existing first-position balance plus the new second lien, measured against property value, must fall within that ceiling. A lower first-position balance leaves more room for proceeds.
The blended rate is the weighted average interest rate across both liens. Because the first-position loan is typically larger and carries the lower rate, it pulls the average down, so the blended cost lands well below the second lien rate on its own.
Qualification is based on the property’s rental cash flow relative to total debt service on both liens, with a minimum DSCR of 1.1x, rather than on personal income documentation.
Yes. Brokers, connectors, and transaction coordinators are welcome to submit through the Quick Quote. Our team will size the scenario and return terms.
Send us the property, the existing first-position loan, and the rent. We will tell you how much equity is available under the 85% combined LTV ceiling and what the blended cost looks like across both liens.
Prefer to explore other rental financing first? Review our DSCR rental loan program or our Morby Method and Stack Method financing.
Non-owner-occupied loans only. All products are intended for residential investment properties. Rates, advance rates, and structures shown on this page are illustrative and for educational purposes; actual terms depend on approval criteria including credit profile, investor experience, property type, ownership duration, and the capital source the scenario is routed to. Guidelines are scenario-dependent and subject to change.
We do not currently lend in the following states: Arizona, Nevada, California, Idaho, Oregon, Minnesota, Utah, and North Carolina.
