Closed-end second loans are fixed-rate, fully-amortizing second mortgages with one-time lump-sum disbursement. Loan amounts up to $750,000. CLTVs up to 90%. Three program variants cover primary residences, second homes, and investment properties — with full doc, alt doc (bank statement, 1099, P&L), and DSCR (rental income) qualifying paths. Standalone option lets you keep your existing low-rate first mortgage intact. Piggyback option lets you avoid PMI on a new purchase. Lending in 49 states. New York excluded.
No SSN required. Takes about 2 minutes.
What is a Closed-End Second?
A closed-end second loan (CES) is a fixed-rate, fully-amortizing second mortgage on a property you already own (or are buying with piggyback financing). You receive the full loan amount as a single lump-sum disbursement at closing. You repay on a fixed monthly schedule over 10, 15, 20, or 30 years. The loan sits in second-lien position behind your existing first mortgage — it does NOT replace the first.
Compare to a HELOC (revolving credit line with variable rate) or a cash-out refinance (replaces your entire first mortgage). Closed-end seconds give you payment predictability and let you preserve a low-rate first mortgage.
Three Programs
Expanded Access Prime — most flexible
Non-QM standalone second. Allows owner-occupied, second home, and non-owner-occupied investment property. Documentation menu includes Full Doc, Express Doc, 1099, Bank Statements, P&L, WVOE, plus DSCR (rental income qualifying) for investment. Loan amounts up to $750,000. CLTVs up to 90% on Full Doc owner-occupied. Combined loan amount up to $3.5 million. Available in all PRMG states including Texas.
Elite — Alt Doc standalone
Non-QM standalone second with Alt Doc options (12 or 24 month bank statements). Owner-occupied and second home only. Loan amounts up to $500,000. CLTVs up to 85% on Full Doc. Standalone option only — no piggyback. Not eligible in Texas or West Virginia.
Classic Elite — agency, full doc, allows piggyback purchase
Agency-standard standalone OR piggyback second. Full Doc only (W-2 / tax return per Fannie Mae DU). Owner-occupied and second home only. Loan amounts up to $500,000. CLTVs up to 85%. Allows Texas Section 50(a)(6) home equity. The only CES program allowing purchase transactions (as a piggyback to the first mortgage).
Quick Decision Tree
Buying a home and want to avoid PMI?
Classic Elite piggyback. Structure 80/10/10 (80% first + 10% second + 10% down) to keep the first at 80% LTV and avoid PMI on the first.
Self-employed with write-offs reducing tax-return income?
Expanded Access Prime with Bank Statement, 1099, or P&L documentation. Qualify on actual income instead of net tax-return income.
Tapping equity on a rental property?
Expanded Access Prime with DSCR option. Qualify on rental income covering the new mortgage payment instead of personal income qualification.
Need Texas 50(a)(6) home equity cash-out?
Classic Elite. The only CES program allowing Texas Section 50(a)(6) home equity transactions.
Standard full-doc owner-occupied refinance?
Classic Elite or Expanded Access Prime — pricing comparison usually decides between them.
No SSN required. Takes about 2 minutes.
Common Uses
Debt consolidation
Pay off high-interest credit cards, personal loans, or auto loans with a lower-rate second mortgage. The interest on a home equity loan may be tax-deductible if used to buy, build, or substantially improve the home (consult your tax advisor).
Major renovation or addition
Kitchen remodel, bath remodel, addition, ADU construction, pool installation — projects with known total cost are well-matched to closed-end seconds where you receive the lump sum and pay contractors as work completes.
College tuition / education costs
Home equity rates often beat private student loan rates. A closed-end second sized to multi-year tuition need can be more cost-effective than annual private student loans.
Investment property down payment
Pull equity from your primary residence to use as down payment on an investment property. The closed-end second on your primary stays in place while you use the funds for the investment purchase.
Frequently Asked Questions
For detailed answers on credit, DTI, CLTV reductions, documentation options, state eligibility, application process, and comparison to HELOC and cash-out refinance, see the Closed-End Second Loans FAQ — comprehensive matrix-sourced answers across 10 topic sections.
No SSN required. Takes about 2 minutes.
About this page: Compiled by J.D. Peck, NMLS #314883, Area Manager and Mortgage Loan Originator at Paramount Residential Mortgage Group (PRMG), NMLS #75243. 25+ years of mortgage lending experience, 3,100+ loans closed, Scotsman Guide Top Originator 2026. Rules above are from the PRMG Closed End Second product matrices for Expanded Access Prime, Elite, and Classic Elite. Guidelines, fees, and limits are subject to change. Lending in 49 states. New York excluded. Last updated June 6, 2026.