Cash Out Of A Rental. First Mortgage Untouched.
A standalone second lien on an investment property, qualified on the rent the building produces.
Access equity without disturbing a first mortgage you want to keep
A second lien qualified on coverage rather than on your tax returns.
- A standalone loan in second lien position.
- Available for a cash-out refinance.
- For investment property held for a business purpose.
- Qualifying uses a debt service coverage ratio, with a minimum of 1.00.
- Your existing first mortgage stays exactly as it is.
- Prepayment penalty terms are available from one to five years, and there is a no-penalty option.
Second lien position
Cash-out refinance
Investment property only
Minimum coverage ratio of 1.00
First mortgage stays in place
Prepayment options including none
What is the Saxton DSCR Second Lien Loan?
A way to take equity out of a rental without refinancing the loan you already have.
Many investors are sitting on rental properties with a first mortgage they have no interest in touching, often because the rate on it is better than anything available now. The usual way to access equity is a cash-out refinance, which means replacing that first mortgage entirely. For a lot of people, that trade is not worth it.
This product solves that. It is a standalone loan in second lien position, so your existing first mortgage stays exactly where it is. You take the cash out through the second rather than by refinancing the first.
Qualifying works the way DSCR lending generally works. The property has to cover itself, with a minimum debt service coverage ratio of 1.00. It is for investment property held for a business purpose. Prepayment penalty terms run from one to five years depending on the option chosen, and there is a version with no prepayment penalty at all, which is worth asking about if you expect to sell or refinance soon.
Why choose the Saxton DSCR Second Lien Loan?
For investors who want the equity but not a new first mortgage.
Keep The First Mortgage
This is the entire point. If the loan you already have is one you want to keep, a second lien lets you leave it alone.
The Property Qualifies Itself
Coverage is measured against the rents, so your personal tax returns are not the centerpiece of the file.
Business Purpose Structure
It is written as a business-purpose investment loan, which is the appropriate structure for a rental you hold as an investment.
Choose Your Prepayment Terms
Options run from one to five years, and there is a no-penalty version. Which one fits depends on how long you plan to hold.
We Will Run Coverage First
The coverage ratio decides most of this. Send us the rents and the existing payment and we can tell you quickly whether it works.
Strictly Investment
This is a business purpose loan, so neither you nor a family member can be living in the property.
Hear From Homeowners Like You
Frequently Asked Questions
Straight answers about taking cash out of a rental with a second lien.
If your existing first mortgage carries a rate you want to keep, refinancing means giving that up. A second lien leaves the first exactly as it is and takes the cash out separately.
The minimum debt service coverage ratio for this product is 1.00, meaning the property needs to cover its obligations.
No. This is a business-purpose loan for an investment property.
No. This product is specifically for a cash-out refinance.
It is a standalone second lien, so it sits behind your existing first. The combined position is part of what gets evaluated.
There are terms of one, two, three, four and five years, and there is also a version with no prepayment penalty. The choice affects your pricing, so it is worth deciding early.
The qualifying analysis is driven by the property rather than by personal income documentation, which is how DSCR lending is structured.
Find out what you qualify for
If you want the equity out of a rental but not a new first mortgage, this is the structure. Send us the rents and the current payment.
Get Pre-Qualified- Consumer Financial Protection Bureau, home equity loan compared with a HELOC
- Consumer Financial Protection Bureau, mortgages
*Loan amounts, rates, terms, and eligibility are subject to credit approval, property and rental income verification, appraisal, and program guidelines. This is a business-purpose investment loan in second lien position, available for cash-out refinance, and requires minimum debt service coverage. Prepayment penalty terms vary by option selected. Not all applicants will qualify. Saxton Mortgage, LLC is an Equal Housing Lender.