Updated over 6 years ago on . Most recent reply
Second lien positions as down payment
I am looking for a lender/ HML that will allow second position lien as down payment. Does anyone has any recommendation?
Yes, I am aware most HML don't allow second positions.
Most Popular Reply
#1 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
- Lender
- Fort Worth, TX
- 6,366
- Votes |
- 7,988
- Posts
#1 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
- Lender
- Fort Worth, TX
@Leon L. if you are looking for a loan product that still allows you to keep your properties first lien then you would need a "Line of Credit". These are admittedly harder to find on investment properties but they are not "illegal". Try posting in the Texas forum that you are looking for a Line of Credit in the Austin area (assuming that's where the property is) to get some local suggestions. Be prepared to receive about 70% or 75% of the ARV for the total loan balances against the house of that nature. So if $300k is your value, 75% would be $262,000, subtract out your $100k loan, so a Line of Credit of around $160k or so. Good luck!