Second Mortgage
A loan secured by a property in subordinate position to the first mortgage. Less common on investment property; sometimes used to bridge equity gaps.
Why it matters on a DSCR loan
On investment property, second-lien options are scarce, so most investors needing to tap equity end up comparing a full DSCR cash-out refinance against the limited second-mortgage market. A second can make sense when your existing first mortgage carries a rate you don't want to give up and you only need a modest amount of capital. Watch combined leverage — the total of both liens still has to leave the property cash-flowing, and subordinate financing may need first-lien lender approval.
Related terms
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DSCR Calculator Get a QuoteReviewed by Arin Baghermian, Broker Owner — NMLS #1220456 · Last reviewed July 2, 2026 · DSCR Capital Partners is a brand of UTM Financial, LLC (NMLS #2591548).