A DSCR Stand-Alone Closed-End Second is an investment property loan that allows you to borrow a lump sum against your property’s equity without refinancing your existing first mortgage. It has a fixed interest rate and fixed term of either 15 or 30 years, just like a traditional mortgage.

The loan is primarily qualified based on the property’s cash flow (DSCR – Debt Service Coverage Ratio), which allows for alternative documentation and  bypasses the need for personal income verification.

This type of loan is ideal for investors who want to access a large amount of capital to fund a single, significant expense, such as a down payment for a new investment property or a major renovation on an existing one.

• Choose a second mortgage if you have an excellent interest rate on your current mortgage and you don’t want to give it up. It’s a great way to access cash without changing your primary loan.

• Choose a refinance if you want to consolidate your debt into one payment and believe you can get a new, lower interest rate on your full loan amount. This is often the case when interest rates have fallen since you took out your original mortgage.

With a DSCR 2nd Mortgage, you can unlock up to $500,000 from your rental property—typically in just 2 to 6 weeks. Since you’re not refinancing your first mortgage, the process is streamlined. And if you’re borrowing $125,00 – $250,000, there’s no appraisal required, which eliminates the slowest part of the timeline.

It’s a fast, flexible way to put your investment to work—without unnecessary delays.

Instead of looking at a borrower’s W-2s, tax returns, or Debt-to-Income (DTI) ratio, a DSCR 2nd Mortgage lender focuses on the property’s ability to generate income.

DSCR Second Mortgage Qualification:

• Property Type: Must be a residential rental property with 1 to 4 units.

• DSCR Requirement: Minimum ratio of 1.0, meaning the property’s rental income must fully cover the debt payments.

• Credit Score: 660 or higher is required.

• Equity Position: You’ll need sufficient equity remaining after the second lien

• Loan Amounts: range from $125,000 to $500,000.

• No Income Verification: Approval is based solely on the property’s cash flow—not your personal income.

• Appraisal Waiver: For loans between $125,000 and $250,000, an appraisal is not required.

• Fast Closing: Many loans close within 2 to 4 weeks, making it a quick way to access equity.

Yes, you can refinance a second mortgage, such as a DSCR 2nd mortgage. Some investors choose to refinance their first and second mortgages into a single loan to simplify payments, but you can also refinance the second mortgage on its own.

Making extra payments on your mortgage can help you pay it off sooner and reduce the total interest you’ll pay over time. By lowering your principal balance faster, you limit how much interest accrues, which can lead to significant savings.

During the first three years of your loan, you’re allowed to pay up to 20% of the remaining principal each year without triggering a prepayment penalty—giving you a great opportunity to get ahead financially.

With ClosingPoint’s Match & Beat Guarantee, you either get the best rate—or $500.

Why Choose ClosingPoint?

• $500 Guarantee – If we can’t beat your offer, you still benefit
• Clear, Side-by-Side Comparisons – We Walk you through every detail
• Fast Pre-Approvals & Rate Locks – Quick, efficient service
• Expert Loan Advisors – Personalized support from start to finish
• No Pressure, Just Options – You stay in control
• Competitive Rates & Low Fees – Designed to save you money

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