Trustindex verifies that the original source of the review is Google. We had an outstanding experience working with Martin and his team at Watermark while purchasing our first home. As first-time homebuyers, the process felt overwhelming at times, but Martin guided us every step of the way with professionalism, patience, and expertise. His team was responsive, professional, and kept everything moving smoothly from start to finish. Their communication and attention to detail made what could have been a stressful process feel easy and manageable. We are so grateful for Martin, Dana, and the entire Watermark team for helping us buy our first home. We couldn't have asked for a better lending partner and would highly recommend them to anyone looking for a knowledgeable and customer-focused mortgage team. Thank you for helping make this milestone possible!Posted on GoogleTrustindex verifies that the original source of the review is Google. Ron and Dana were outstanding in their attention to detail, professionalism, and assistance.Posted on GoogleTrustindex verifies that the original source of the review is Google. I'm glad I found this lender. They offered a competitive rate and reasonable closing costs. Mike and Dana were very helpful throughout the home-closing process. They responded quickly to my questions, and the loan closed quickly as well.Posted on GoogleTrustindex verifies that the original source of the review is Google. Worked with Ron Trejo to sort a refinance when I was buying an ex out of a house. He was very patient as the process (due to issues on my end with the ex) was dragged out a bit longer than it should have been. Definitely recommend, and I would refinance through them in the future!Posted on GoogleTrustindex verifies that the original source of the review is Google. Douazong Lee Was amazing through out the process. She was very honest and trustworthy. She was always available to help. She gave us the best rate and we are very happy.Posted on GoogleTrustindex verifies that the original source of the review is Google. The Finest Customer Service ... Period! I had the good fortune to reach Edie, Senior Servicing Manager for the bank when I had questions about our mortgage. She was one of the most knowledgeable financial professionals I have ever spoken with. She was preparing for an important meeting (which usually results in a transfer to another person/department). Did this happen? ... NO it did not. Despite her need for uninterrupted focus, she took my call, never made me feel rushed, and answered all my questions ... which took a good 15 minutes out of her day. One of the qualities I relished most about Edie was her enthusiasm and sense of humor. I felt like I was speaking with a good friend that really cared about me. I wish all my interactions were like that. Edie even went so far as to email me all the documents that I needed AND gave me her direct line, just in case I had more questions ... Who does that?? ... Clearly someone that loves their job and puts the bank's customers first. Watermark Capital is lucky to have Edie! If I could give her 10 stars I would. She's just that good. PS. If you're looking for an exceptional bank ... look no farther than Watermark Capital. I've had my mortgage with them for years and they are one of the most responsive and helpful banks I have ever dealt with.Posted on GoogleTrustindex verifies that the original source of the review is Google. My wife and I recently worked with Douazong Lee and Stephanie Marroquin and our experience could not have been more courteous, insightful and professional. Not only did we complete our mortgage refinance in less than a month but the interest rate and closing costs were the best we could find. We highly recommend Watermark Capital, Inc and Douazong and Stephanie! Gib and Jane Fugate, West Lafayette, INPosted on GoogleTrustindex verifies that the original source of the review is Google. This is the second time I’ve refinanced with Watermark and, in both instances, they offered the best rate and were quick to close. Mike Greenberg and Dana Chupp are a breeze to work with and really do put in the effort to provide excellent service. They have a secure online portal for submitting and reviewing financial docs which gives me peace of mind that sensitive info isn’t kept in someone’s email inbox. I wouldn’t hesitate to refinance with Watermark again.Posted on GoogleTrustindex verifies that the original source of the review is Google. We worked with Ron Trejo at Watermark to refinance our mortgage, and it was an extremely positive experience. Ron was honest, knowledgeable, and always available when we had questions about numbers or next steps. It's a big decision, but Ron and Watermark made it a pleasant one.
NON-OWNER OCCUPIED LENDING
Investor Second Mortgages
Don’t let a low first-mortgage rate trap your capital. We provide standalone second mortgages on rental properties—giving you the cash to acquire your next door, fund renovations, or scale your portfolio without touching your primary lien.
- No impact on your credit score to check eligibility.
INVESTOR LENDING ENGINE
INVESTOR Roadblock
Banks
Watermark
Strict DTI Ratios
Low LTV Caps
Max Property Limits
- Not a commitment to lend. All loans are subject to credit and property approval.
BUILT FOR INVESTORS
Bypass strict DTI caps and property limits to fund your next move.
SCALE YOUR PORTFOLIO
Unlock trapped equity in your rentals to acquire your next door fast.
Preserve Your First Rate
Access cash while keeping your low primary mortgage untouched.
(see Licenses page for state availability)
The Basics
What is an Investment Property Second Mortgage?
It operates just like a traditional fixed-rate home equity loan, but it is specifically designed for non-owner-occupied real estate. It delivers a lump sum of cash from your rental’s equity while leaving your low first-mortgage rate completely untouched. The biggest difference is how you qualify. Instead of hitting you with strict personal debt-to-income (DTI) limits or capping the number of properties you can own, we can often qualify you based on the actual rental cash flow the property generates.
Investment Property Second Mortgage
How you qualify:
Using flexible investor guidelines based on your property's rental income and equity, rather than strict personal W-2s or DTI limits.
How you get cash:
A single, full lump-sum payout at loan closing.
How interest works:
A fixed rate with a predictable, set monthly payment for the life of the loan.
Best for:
Real estate investors who want to pull cash out to fund renovations or acquire new doors without refinancing and losing their current low rate.
Tailored For Real Estate Investors
Traditional lenders force you to sacrifice your low interest rate or penalize you for scaling your portfolio. We help you unlock your trapped equity without the conventional red tape.
The Rate-Locked Landlord
Trapped by a Low First Rate
You have equity in your rentals, but a traditional cash-out refinance would ruin your historically low rate. Tap your equity while keeping your primary mortgage untouched.
The Scaling Investor
Funding the Next Acquisition
Need a down payment for your next door? Access the idle capital sitting in your existing portfolio to close on new deals fast, without jumping through retail bank hoops.
The Leveraged Owner
Strict DTI Restrictions
Traditional banks penalize your debt-to-income (DTI) ratio the more mortgages you hold. We use flexible guidelines to qualify you based on the property’s actual cash flow.
The Portfolio Builder
Conventional Property Limits
Conventional lenders often cut you off once you hit four to ten financed properties. Unlock your equity and keep adding doors to your portfolio.
Who is this for?
In the interest of transparency, our Investment Property Second Mortgages are built for the following borrower profiles:
- LLC Property Owners: Investors who hold their rental properties in an LLC or corporate entity and face immediate roadblocks from retail banks that only lend to individuals.
- Value-Add Investors: Property owners looking to extract equity to fund major renovations, add ADUs (Accessory Dwelling Units), or upgrade units to force appreciation and maximize rental yield.
- Debt Consolidators: Investors needing to pay off short-term hard money loans, private lenders, or high-interest business debt using the long-term equity in their stabilized rentals.
- Self-Employed Landlords: Borrowers who prefer to qualify using the property's actual cash flow (DSCR) or their business bank statements rather than providing complex personal tax returns.
- Fast-Acting Buyers: Active real estate investors who need reliable, fast liquidity from a seasoned property to capitalize on time-sensitive real estate acquisitions.
- Start your confidential review. Zero obligation to move forward.
Watermark vs. Typical Lenders
Traditional retail banks rely on rigid, automated checklists. If your income structure doesn’t fit perfectly into their box, they decline the loan. We are built to solve complex scenarios.
| Feature | Typical Lenders | Watermark Investor Second |
|---|---|---|
| Income Verification | Strict W-2s & DTI | Property Cash Flow (DSCR) |
| Property Limits | Capped at 4–10 Doors | Unlimited Financed Properties |
| Entity Vesting | Individuals Only | LLCs & Corporations Accepted |
| First Mortgage | Forced Refinance | Rate Stays Untouched |
| Speed to Funding | 45+ Days of Red Tape | Streamlined Investor Closing |
*Second mortgages are subject to credit approval, property eligibility, and equity limits. DSCR and LLC approvals are evaluated on a case-by-case basis. Not a commitment to lend.
- Personalized analysis based on your specific property and equity position.
Frequently Asked Questions
Yes. While many traditional retail lenders only offer second mortgages or HELOCs on primary residences, specialized investment property second mortgages are designed explicitly for non-owner-occupied rentals.
No. A second mortgage is a completely separate loan with its own distinct term and rate. Your primary mortgage—along with its historically low interest rate—remains safely in place and completely untouched.
Many investor-focused loan programs offer alternative underwriting methods. Instead of relying strictly on personal W-2s or penalizing you for smart tax write-offs, qualification can often be based on the property’s actual cash flow (sometimes called a DSCR loan) or your business bank deposits.
Generally, no. Once the loan closes, the lump-sum cash is yours to deploy. Most real estate investors use the funds to cover major property renovations, consolidate high-interest short-term debt, or act as a down payment to acquire their next door.
While conventional lenders frequently force borrowers to close in their personal names, many specialized investor mortgage programs allow you to close and hold the loan directly in the name of an LLC or corporate entity.
Maximum Loan-to-Value (LTV) limits depend on several factors, including your credit profile, the property type, and specific state regulations. Lenders will always require you to maintain a certain percentage of equity in the property to mitigate risk, meaning you cannot borrow 100% of the home’s current market value.
Reviewed by Nick Joutz
Founder, Principal | NMLS #9220
Ready to put your property's equity to work?
Experience a frictionless, advisor-led process with our investor-focused equity specialists. No hard credit pull required to see your options.
01
- Share Your Goals
Tell us about your rental property, your target loan amount, and your plan for how to use the cash.
02
- IN-HOUSE REVIEW
Our investor-focused team reviews your property’s cash flow and equity to calculate your true borrowing power
03
- Act with Confidence
Receive a clear and a frictionless roadmap to closing your investment property second mortgage fast.
Legal & Compliance Disclosures: Investment Property Second Mortgages are subject to borrower qualification, credit approval, underwriting guidelines, and available equity. Approval is not guaranteed. Alternative qualification methods (such as DSCR or cash-flow based underwriting) apply specifically to designated investor programs; standard documentation may be required for other loan types. You may still have options if previously declined by traditional retail banks, but a complete in-house underwriting review is required. Available loan amounts, terms, property limits, and LLC vesting options vary by state and specific program selection.
State Availability & Servicing: Watermark Home Loans lends in most U.S. states. For our full state licensing footprint, see the Licenses page. Watermark Capital, Inc. sells and services Fannie Mae, Freddie Mac, and Ginnie Mae loans. Proprietary second-mortgage loans, including the products described on this page, are not serviced by Watermark; servicing transfers after closing.
Credit Inquiries: Submitting the initial buying power form does not trigger a hard credit inquiry. A hard credit pull is only required when you choose to submit a formal mortgage application.
Watermark Capital, Inc. is an Equal Housing Lender. NMLS #1838.
