If you’re an investor sitting on a rental property with a 3–4% first mortgage rate, refinancing it just to pull out equity for the next deal probably makes your stomach turn. A DSCR second mortgage skips that trade-off. It’s a second-lien loan, qualified off the property’s rental income rather than your personal income, so you can access equity while your low-rate first mortgage stays untouched.
How it works
The mechanics mirror a standard DSCR loan — the lender looks at whether the property’s rent covers its debt payments, not your tax returns or W-2s — but the loan sits in second position behind your existing first mortgage.
Minimum credit score: 680*
Program highlights
- Combined loan-to-value up to roughly 70–75%, depending on the investor and property reserves*
- Qualification based on the property’s DSCR, not personal income documentation
- No limit on how many properties in a portfolio can use this strategy
- Funds can go toward a down payment on the next acquisition, renovations, or paying off higher-rate debt
Who it’s for
Investors who want to keep scaling a portfolio without disturbing a first mortgage rate they already like.
*Figures shown are typical for this program; exact minimums vary by investor and will be confirmed on your scenario.
Have a scenario you want to run? Send us the details and we’ll let you know within hours whether it fits — Select Home Loans | NMLS # 2384002 | Call (888) 550-3296 | Email: info@selecthomeloans.com.
