Program

Closed-End Second Mortgages

Second Liens

Tap the equity without touching the first mortgage. A fixed-rate, closed-end second lien delivers a lump sum while the borrower keeps the low rate they already have.

To 90% CLTVFixed RateFull & Alt Doc

At a glance

Loan amounts
$50K – $500K
Max CLTV
90%
Min FICO
680
Rate
Fixed
Full-doc, bank-statement, and DSCR qualifying are all available on the second, so the borrower qualifies the same way they would on a first.

What Is a Closed-End Second Mortgage?

A closed-end second mortgage is a fixed-rate lump-sum loan secured in second position behind an existing first mortgage. It lets a borrower tap home equity while leaving the first mortgage — and its rate — completely untouched.

Who Are Closed-End Seconds For?

Homeowners with a sub-4% first mortgage and meaningful equity
Borrowers consolidating higher-rate debt
Owners funding renovations, tuition, or a business
Investors leveraging a rental for the next down payment
“Keep the first-mortgage rate you'll never see again, and get the cash you need with a fixed second.”
How to pitch it to your borrower

How Does a Closed-End Second Work?

What the file needs — and how we get to a number.

01The lien

Closed-end second behind an existing first; first-lien payment history verified. Combined LTV to 90%.

02Qualifying

Full doc, bank statement, or DSCR — the same documentation paths as a first mortgage, through the Sky Plus suite.

03Property

Primary, second home, or investment. Appraisal or AVM depending on loan amount.

04Terms

Fixed rate, fully amortizing, 10- to 30-year terms. Funds disbursed at closing.

Closed-End Second Requirements

Existing first mortgage with verified payment history; combined LTV up to 90%
Loan amounts $50K–$500K; fixed rate, fully amortizing 10- to 30-year terms
Qualifying by full doc, bank statement, or DSCR — the same paths as a first mortgage
Minimum FICO per the matrix (680 typical)
Appraisal or AVM depending on loan amount; primary, second home, or investment

Requirements follow the current Sky TPO matrices and guidelines; see the matrix for each suite below.

Sky TPO Closed-End Second Programs

Each suite sets the occupancy, loan amounts, and matrix — pick the one that fits the property.

Sky Plus

Closed-End SecondsFull & Alt Doc, Full Documentation Select, and DSCR closed-end seconds.
Full & Alternative Documentation — Closed-End SecondsMatrixGuidelines
Full Documentation Select — Closed-End SecondsMatrixGuidelines
DSCR — Closed-End SecondsMatrixGuidelines

Real-World Closed-End Second Scenarios

Scenario 01

Keep the 3% first

$1.1M home, $520K first at 3.1%. A $300K second at 85% CLTV funds a remodel without refinancing the first.
Scenario 02

Rental property second

DSCR-qualified second on an investment duplex pulls $150K for the next acquisition.

Frequently Asked Questions About Closed-End Seconds

What is a closed-end second mortgage?

A fixed-rate, lump-sum second lien behind an existing first mortgage that leaves the first mortgage untouched.

What is the maximum combined LTV?

Up to 90% CLTV per the matrix.

How is this different from a HELOC?

Fixed rate and a fixed payment on a lump sum — no variable rate, no draw period.

Does my first mortgage change?

No. It stays exactly as it is.

Can self-employed borrowers qualify?

Yes — bank-statement documentation is available on the second.

Have a Closed-End Second scenario?

Price it in Sky Port in minutes or send it to the Scenario Desk.