2nd mortgage lender

[Rick Im]

Does anyone know of a lender that offers second mortgages on rental properties? I've been working with several lenders for DSCR loans, but I've found that the fees are quite high, with minimal benefit in terms of lowering my current interest rate. To leverage the equity for financing my next deal, a second mortgage seems like a more cost-effective option. Any recommendations?

[Devin Peterson]

Quote from @Rick Im:

Does anyone know of a lender that offers second mortgages on rental properties? I've been working with several lenders for DSCR loans, but I've found that the fees are quite high, with minimal benefit in terms of lowering my current interest rate. To leverage the equity for financing my next deal, a second mortgage seems like a more cost-effective option. Any recommendations?

There are a very limited and reliable few of lenders that do true DSCR 2nds. Typically max leverage is 70CLTV - very higher Prepayment penalties and be ready for rates north of 12% - I answer this question all the time. Calculate the blended rate, your decision as to what to do (2nd or 1st lien refi) is all in the math! Happy to help crunch it. Good luck!