Subto with 2nd position lender ??

[Vanessa Switzler]

Hi All! I am working on a subto deal where we would take over the first mortgage on a ST rental property but would need a lender to finance the equity on the house.  Is this possible? I spoke with my lender who obviously declined and from what I understand banks in general will never be amenable to being second position mortgage. Do I have any other options or is this a dead end? Thank you in advance!

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Quote from @Vanessa Switzler:

Hi All! I am working on a subto deal where we would take over the first mortgage on a ST rental property but would need a lender to finance the equity on the house.  Is this possible? I spoke with my lender who obviously declined and from what I understand banks in general will never be amenable to being second position mortgage. Do I have any other options or is this a dead end? Thank you in advance!

Is it truly equity or is it someone's wishful price? What CLTV (cumulative loan to value) would that make it? As in, if the property is worth $600,000 what's the total amount you would owe on the property? If it makes it “overleveraged” you’re simply looking for trouble.