Second trust deeds can be secured by commercial, residential, or mixed-use properties throughout California. Loans can often be provided quickly and may not require any income documentation. If you need capital quickly and do not want to disturb your low rate first mortgage, a second trust deed loan may be a good option to consider.
What is a Second Trust Deed Loan
A Second Trust Deed Loan is a type of loan that allows borrowers to use their property as collateral for additional financing. This type of loan is also known as a junior loan or subordinated loan because it is taken out against a property that already has an existing loan or lien, called the first deed of trust. In California, deeds of trust are used as the preferred security instrument for lending and title industries. This means that when someone in California refers to taking out a second mortgage on their home, they are most likely referring to a Second Trust Deed Loan.
Obtaining a Second Trust Deed Loan in California
Securing a Second Trust Deed Loan in California can be a challenging and costly process, with lenders often imposing stringent requirements to safeguard against default, litigation, and regulation. However, HCS Equity offers an alternative solution by providing Second Trust Deed Loans secured by commercial, residential, or mixed-use properties throughout the state. With HCS Equity, borrowers can obtain the funding they need without having to jump through unnecessary hoops or face excessive fees.
The Requirements for Obtaining a Second Trust Deed Loan
Requirements for securing a Second Trust Deed Loan vary depending on the lender and the type of loan. For example, some lenders do not have any credit score requirements for their Stated Second Trust Deed Loans and do not require any tax returns. However, the combined loan to value (CLTV) usually cannot be high. HCS Equity will not exceed a 50% CLTV (combined loan to value ratio and any existing first trust deeds must be in good standing for a borrower to qualify.
Who May Be a Good Candidate for a Second Trust Deed Loan
A Second Trust Deed Loan can be a good option for borrowers who have a low mortgage rate and don’t want to refinance their existing loan to access the equity in their property. In these situations, the borrower may have a low-interest first mortgage that they want to keep in place, but they need to access the equity in their property quickly. A Second Trust Deed Loan allows them to do this without disturbing their existing first mortgage. This can be a good option for borrowers who want to take advantage of an investment opportunity or solve a financial issue.
If business owners are looking to infuse capital into their business using the equity in their primary residence or rental property, a Second Trust Deed Loan could be a viable solution. With this type of loan, they can access their property’s equity without the need to refinance their current first mortgage. This option is particularly attractive to those who wish to capitalize on investment opportunities or address financial challenges. A Second Trust Deed Loan can provide swift access to funds to help expand or maintain a business.
These loans are also a choice for individuals who may not qualify for traditional financing. This may include homeowners who might not qualify for a traditional second mortgage or deed of trust. Investors seeking a bridge loan or other form of hard money lending may also benefit from a Second Trust Deed Loan.
Second Trust Deed Loans present a viable option for California homeowners and business owners seeking to leverage their property’s equity without refinancing their current primary mortgage. This loan category offers swift access to capital that can be channeled towards diverse objectives, such as business investments and capitalizing on lucrative prospects.
Obtaining a second trust deeds loan at competitive rates and with a quick turnaround is possible with HCS Equity. Contact us today to get started on your second trust deeds loan.