Stand-Alone Second Mortgage

Stand-Alone Second Mortgage – Made Simple

This program is great for self-employed borrowers and real estate investors who may not qualify with traditional income documents.

  • You can qualify by using 12 to 24 months of business bank statements — or choose the full documentation option if that works better for you.

  • It’s called a “stand-alone second mortgage” because you keep your existing first mortgage and take out a new, separate loan based on your home’s equity.

  • You get the money as a one-time lump sum, and

  • There are no limits on how you can use the funds — whether it’s for investing, home improvements, or other needs.

This is a flexible way to access the value in your home without refinancing your current mortgage.

❌ What’s Not Required for a Bank Statement Loan:

  1. Tax Returns
    You don’t need to provide 1 or 2 years of federal tax returns (1040s), which are typically required for income verification on traditional loans.

  2. W-2 Forms
    These loans do not require W-2s since borrowers aren’t salaried employees.

  3. Paystubs
    You won’t need to submit paystubs from an employer, as income is verified via deposits.

  4. Traditional Employment Verification
    No need for a written Verification of Employment (VOE) from a company HR department.

  5. Debt-to-Income (DTI) Ratio Calculation (in some cases)
    Many bank statement lenders use bank deposits as a proxy for income and may not calculate a formal DTI.

  6. Personal Bank Statements (if using business bank statements only)
    If you choose to use business statements, some lenders allow you to avoid submitting personal ones (and vice versa, depending on the structure).

  7. Full Documentation of All Business Expenses
    While expenses may be factored in as a percentage (usually 50%), borrowers don’t have to show itemized profit-and-loss statements unless specifically requested.

✅ Instead, What Is Needed for Bank Statement Loans:

  • 12 or 24 months of consecutive personal or business bank statements

  • Proof of self-employment (like a business license, CPA letter, or incorporation documents)

  • A good to strong credit score (often 620–700+)

  • A reasonable down payment (typically 10%–20%)

Overview

  • Who it’s for:

    • Self-employed borrowers

    • Real estate investors

  • How to qualify:

    • Use 12–24 months of business bank statements, or

    • Choose a full documentation option (W-2s, tax returns, etc.)

  • Loan structure:

    • It’s a second mortgage, separate from your current first mortgage

    • Your first mortgage remains untouched

  • Payout:

    • You receive a one-time lump sum payment at closing

  • Use of funds:

    • No restrictions — use the money for:

      • Home improvements

      • Business needs

      • Debt consolidation

      • Investments

      • Or anything else

  • Key benefits:

    • Access home equity without refinancing

    • Flexible income documentation for self-employed borrowers

    • Ideal for those who don’t qualify for traditional loans

GET IN TOUCH

Contact Details

If you are interested in working with us then please drop us a line, we would love to hear from you.
Schedule an appointment

Ready to make home ownership a reality?

Schedule Now
This is the day we make a 
Difference 
!