Unlock Equity.
Don't Sacrifice Your Rate.
Trapped behind a prepay penalty or holding a rate you won't give up? A 2nd mortgage lets you pull equity from your investment property without touching your existing loan — and without losing a single basis point.
You Have Equity. But a Cash-Out Refi Is Expensive.
Refinancing your 1st mortgage to pull equity means resetting to today's rate — or triggering a prepay penalty you spent years planning around. A 2nd mortgage solves both problems by leaving your existing loan structure completely intact.
The Cash-Out Refi Problem
You locked a 3.75% rate on your rental two years ago. Refinancing today to access equity means resetting to 7%+. The math rarely works — you'd spend years recovering the rate differential before netting anything meaningful.
Or worse: you're inside a 3–5 year prepay penalty window. A refi triggers it immediately, wiping out a significant portion of what you were trying to pull out.
The 2nd Mortgage Solution
A 2nd mortgage sits behind your existing 1st as a separate lien. Your 3.75% rate stays locked. No prepay is triggered. You access equity through a new subordinate loan — up to 80% CLTV — and deploy the proceeds toward your next acquisition.
The 1st mortgage servicer doesn't change. Your payment on the 1st doesn't change. Only your capital position improves.
Down Payment Bridge Strategy
Use equity from a property you already own to fund the down payment on your next deal — without selling, refinancing, or depleting reserves.
Use Equity from Property A to Buy Property B
Turn idle equity into active capital — without disrupting your existing debt structure
You own a rental property with significant equity. Your 1st mortgage has a rate — or a prepay clause — you're not going to touch.
We place a 2nd mortgage on that property up to 80% CLTV (subject to program tier and property type). You receive the proceeds and use them as the down payment on your next investment purchase.
The 1st mortgage on Property A stays exactly as-is. Property B closes with new financing from Seth Capital Group. You've scaled your portfolio without liquidating anything — and without giving up a basis point on your existing rate.
This strategy is repeatable. Every property you own with equity becomes a potential funding source for the next acquisition.
Example Deal Structure
More Ways Investors Deploy 2nd Mortgages
The down payment bridge is the headline move — but it's not the only one.
Down Payment Bridge
Access equity from a current property to fund the down payment on your next acquisition. Scale without selling. Grow without refinancing.
Preserve a Low-Rate 1st
You locked a sub-4% rate and need liquidity. A 2nd mortgage pulls the equity while leaving the 1st — and its rate — completely untouched.
Trapped Behind a Prepay Penalty
Your 1st has a 3–5 year prepay clause and you need capital now. A 2nd mortgage gives you access without triggering the penalty or forcing an early exit.
Business Capital Injection
Need capital to fund rehab costs, operations, or portfolio expansion? Leverage equity in your investment properties — not your primary residence.
Cross-Portfolio Leverage
Use equity in your strongest assets to fund moves elsewhere in your portfolio — without disrupting any individual property or loan structure.
Two Program Tiers — Full Doc & Alt-Doc / DSCR
We offer two 2nd mortgage programs for investment properties. Tier 1 qualifies on traditional income documentation. Tier 2 qualifies on DSCR or alternative documentation — no tax returns required.
Full Doc
Traditional income documentation
Alt-Doc / DSCR
No tax returns required
Property Restrictions
- 2–4 unit properties: CLTV reduced to 75% (Tier 1) or 70% (Tier 2 matrix after 5% reduction)
- Florida condos: max CLTV capped at 65% for all cash-out refinances
- 5+ unit multi-family: not eligible for this program
- Owner-occupied properties: not eligible — investment / NOO only
Eligibility Restrictions
- Property listed for sale in the last 6 months: ineligible
- 1st mortgage must be seasoned a minimum of 6 months
- Tier 2 requires minimum 1.00 DSCR on the subject property
- Tier 1 cash-out proceeds cannot exceed the total 2nd lien loan amount
When a 2nd Mortgage Wins vs. a Cash-Out Refi
Not every situation calls for the same tool. Here's the decision framework.
✓ Use a 2nd Mortgage When...
Preserving your existing loan structure is a priority
Your existing 1st has a rate well below current market — refinancing would cost you more in interest than the equity is worth in the near term.
Your 1st mortgage has an active prepayment penalty — a refi would trigger thousands in fees you avoid entirely with a 2nd.
You need capital quickly and surgically — a 2nd mortgage touches less of your existing structure and can close faster than a full refi.
✓ Cash-Out Refi May Win When...
The rate differential works in your favor
Your existing 1st rate is at or near current market rates — there's minimal cost to resetting it and you simplify to one loan.
You need to pull more equity than 80% CLTV allows via a subordinate lien — a cash-out refi on a single loan can sometimes reach higher LTVs with fewer restrictions.
You're past your prepay window and the timing aligns cleanly — making a full refi cost-effective without penalty exposure.
From Inquiry to Funded
Tell us about your property and we'll run a CLTV analysis and confirm program eligibility — usually same day.
Share Property Details
Current value estimate, existing 1st balance, rate, any prepay terms, and intended use of proceeds.
CLTV Analysis
We calculate your maximum 2nd mortgage, confirm DSCR eligibility if applicable, and identify your best program tier.
Appraisal & Underwriting
We order an appraisal, underwrite the file, and coordinate with your existing 1st mortgage servicer.
Fund & Deploy
Close the 2nd. Receive your proceeds. Use them as a down payment on your next acquisition or wherever your strategy dictates.
Find Out How Much Equity You Can Access
Send us your property details and we'll run a same-day CLTV analysis — no SSN required to get started.
Get My CLTV AnalysisSeth Capital Group LLC is not a licensed mortgage lender or broker. All loans are business purpose only and are originated through licensed wholesale lending partners. Loan parameters shown are subject to change and represent program guidelines at the time of publication — not guaranteed rates or terms. CLTV limits, FICO requirements, and cash-out caps vary by program tier and property type. The 80% CLTV maximum applies to SFR properties under Tier 1 (Full Doc) with a minimum 700 FICO, or Tier 2 (Alt-Doc/DSCR) with a minimum 720 FICO and 1.00 minimum DSCR. Properties listed for sale within the past 6 months are ineligible. Programs are available in select states only. The example deal structure is for illustrative purposes only and does not represent a commitment to lend.