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Second Mortgages

Loan Scenario – 85/15 Seller Financing Plus Hard Money Second Mortgage

A homebuyer secured a seller-financed first mortgage at 85% Loan-To-Value (LTV) and asked if FCTD could provide a hard money second mortgage for the down payment, closing costs and moving expenses. In essence, they were asking if FCTD could help with a zero down payment transaction comprised of an 85/15 seller financing, plus hard money second mortgage debt stack.

Picture of Ted Spradlin Ted Spradlin Jan 2, 2023 10:38:17 AM

Do You Offer a Hard Money Second Mortgage to Cover Down Payment and Closing Costs?

This question has come in through the website dozens of the times over the years from prospective house flippers who are short on funds to close their transaction. What they’re asking for is something called “Gap Funding,” which is a hard money second mortgage that “fills the gap” when not having funds for down payment and closing costs.

Picture of Ted Spradlin Ted Spradlin Aug 22, 2022 9:44:50 AM

Home Equity Lines of Credit vs. Second Mortgages

If you want to unlock the value from your home while you’re still living in it, there are two main options available to you. A home equity loan, commonly known as a second mortgage, allows you to extract value from your home as a lump sum payment, which is added to your primary mortgage debt. A home equity line of credit (HELOC) can be a useful alternative, with this option allowing you to draw money from your property as you need it rather than as a lump sum.

Picture of Ted Spradlin Ted Spradlin Dec 5, 2018 12:59:03 AM

Hard Money Business Purpose HELOC

Believe it or not, there is such a thing as a hard money business purpose home equity line of credit (HELOC) available in California for residential and commercial properties. At First Capital Trust Deeds, we have closed a few of these loans over the past couple of months and continue receiving inquiries from self-employed real estate investors every month for the program.

Picture of Ted Spradlin Ted Spradlin Dec 27, 2016 11:31:34 PM

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