Lenders Expand Leverage on Non-Owner-Occupied Investment Properties with New 2nd-Lien Structure

A shift in available leverage is giving investors and their brokers more room to maneuver on non-owner-occupied investment property deals. Lenders are now offering combined loan-to-value (CLTV) ratios up to 90% when borrowers pair a first lien with a second lien positioned behind it—a structure that opens the door to higher-leverage acquisitions without forcing borrowers into unfavorable equity positions.

How the Structure Works

Under this program, a borrower’s second lien sits behind the lender’s first position, allowing the combined debt stack to reach up to 90% CLTV on eligible programs. For investors who have historically been capped at 65–75% LTV on non-owner-occupied assets, this represents a meaningful expansion of purchasing power—particularly for those looking to preserve capital across multiple deals or move quickly in competitive markets.

Program Highlights

• CLTV up to 90% on eligible programs
• Loan amounts starting at $75,000, with large-balance options available in major metro markets
• Broad property type eligibility, including:
  • 1–4 unit residential investment properties
  • Multifamily
  • Mixed-use
  • Office
  • Retail
  • Warehouse
  • Self-storage
  • Automotive-use properties

Who This Benefits

This structure is designed for investors and brokers working with borrowers who have access to secondary financing but need the flexibility of a first-lien lender willing to work alongside it. It’s particularly useful for:

• Investors scaling a portfolio without tying up excessive equity per deal
• Borrowers in high-cost metro markets where property values push loan amounts well above conventional limits
• Brokers looking for a differentiated leverage story to bring to sophisticated repeat clients

The Takeaway

As underwriting standards across the industry remain selective, programs that responsibly extend leverage—without abandoning sound lien structuring—are becoming a competitive differentiator. For lenders and brokers working non-owner-occupied investment deals, this 90% CLTV second-lien structure offers a practical way to say yes to more deals across a wider range of property types.