Your borrower has equity and needs liquidity — but the rate on their first mortgage is too good to refinance away. BFF's closed-end second gives them $125K to $850K in cash without touching the first. Primary, second home, and investment property all qualify.
Program at a Glance
BFF's closed-end second lets borrowers tap existing equity without refinancing their first mortgage. With first mortgage rates significantly higher than rates from a few years ago, this product allows borrowers to access $125K–$850K in equity while keeping a low-rate first intact. All three occupancy types are eligible — including investment property, which qualifies on DSCR income documentation.
CLTV is calculated on the combined balance of the existing first mortgage AND the requested second mortgage. As the combined balance increases, the maximum CLTV steps down. Always use the combined balance when checking the applicable tier.
| Combined Balance (1st + 2nd) | Max CLTV | Example: $800K first mortgage |
|---|---|---|
| Up to $2,000,000 combined | 90% | On $1M property: up to $100K 2nd (to $900K combined) |
| Up to $3,000,000 combined | 85% | On $2M property: up to $900K 2nd ($800K + $900K = $1.7M, within limit) |
| Up to $3,500,000 combined | 80% | On $3M property: up to $600K 2nd if at 80% CLTV |
| Up to $4,000,000 combined | 75% | Higher combined balances require more equity |
| Up to $5,000,000 combined | 60% | Maximum equity required - must have at least 40% equity |
No other second mortgage product at BFF offers this breadth of income documentation. Choose the method that best fits the borrower's income structure. Investment property uses DSCR - no personal income needed.
📄 Full Documentation W-2s, tax returns, pay stubs. Standard agency-style income analysis. 🏠 Bank Statements 12 or 24 months personal or business. For self-employed borrowers. 📑 1099 Income 1-year or 2-year 1099s. 10% expense factor. YTD docs required. 📋 P&L Statement CPA-prepared profit and loss statement. 12 or 24 months. PTIN preparer allowed. 🏛 DSCR (Investment) Investment properties only. Rental income vs. combined PITIA. No personal income required.
Unlike most second mortgage products that limit eligibility to primary residences, BFF's closed-end second is available on all three occupancy types. Each has its own income documentation approach.
🏠 Primary Residence Full doc, bank statements, 1099, or P&L. Standard income qualification against combined PITIA. Max 90% CLTV on ≤$2M combined. 🏰 Second Home Same income doc flexibility as primary. Second home must be reasonably distant from primary or in a vacation/resort area. Standard CLTV tiers apply. Unique Feature 🏛 Investment Property DSCR qualification available - qualify on property rental income, no personal income docs needed. Full doc and bank statements also accepted. Ideal for rental property owners tapping equity.
BFF offers both fully amortizing and balloon repayment structures. No ARMs - all terms are fixed rate. Balloon terms produce lower monthly payments but require payoff at the balloon date.
⭐ Standard Option Fully Amortizing 10 yr 15 yr 20 yr 30 yr Fixed payment fully amortizes the loan over the selected term. No balloon, no surprise payoff date. Higher monthly payment than balloon options but provides payment certainty for the full term. Min loan $125,000. Lower Payment Option Balloon Terms 30/15 40/15 Payment amortized over 30 or 40 years, balloon due at year 15. Lower monthly payment than a 15-year fully amortized loan. Borrower must refinance or pay off remaining balance at balloon date. Min loan $200,000. ARMs are not available on this product.
Key parameters from the BFF Home Equity Matrix. Download the PDF for complete guidelines before pricing any Home Equity scenario.
| Parameter | Requirement |
|---|---|
| Loan Range (Amortized) | $125,000 - $850,000 |
| Loan Range (Balloon) | $200,000 - $850,000 |
| Max CLTV | 90% (≤$2M combined) · 85% (≤$3M) · 80% (≤$3.5M) · 75% (≤$4M) · 60% (≤$5M) |
| Min FICO | 660 |
| Max DTI | 50% |
| Occupancy | Primary Residence · Second Home · Investment Property |
| Income Doc Types | Full doc · Bank statements (12 or 24-mo) · 1099 · P&L · DSCR (investment property) |
| Loan Terms (Amortized) | 10, 15, 20, or 30-year fixed - fully amortizing |
| Loan Terms (Balloon) | 30/15 balloon (amortized over 30, due at 15) · 40/15 balloon (amortized over 40, due at 15) |
| ARMs | Not available - all terms are fixed rate |
| Property Types | SFR · PUD · Townhome · Rowhouse · Modular · 2-4 Unit · Warrantable Condos (max 75% CLTV owner-occupied) |
| Derogatory Seasoning | 4-year seasoning on foreclosure, bankruptcy, short sale, and deed-in-lieu |
| Property Listed for Sale | Properties listed for sale within the past 6 months are ineligible |
| Ineligible States | Maryland · Michigan · Texas · Washington - completely ineligible regardless of property type |
| Note | CLTV is calculated on combined first + second mortgage balance vs. appraised value. Always calculate combined balance before confirming CLTV tier. Warrantable condos have a lower maximum CLTV of 75% for owner-occupied properties. |
Borrower locked a 3% first in 2021. They need $200K for a renovation. A cash-out refi at today's rates costs them hundreds per month in perpetuity. The second mortgage preserves the first.
Real estate investor with significant equity in a rental property. DSCR documentation — no tax returns, no personal income analysis. Qualify on the property's rent vs. combined payment.
Borrowers funding renovations who don't want to disrupt a low first mortgage rate. Lump-sum at closing, fixed repayment schedule — cleaner than a HELOC for a defined project budget.
High-interest credit card or consumer debt being consolidated at a lower rate. Fixed term and fixed payment makes budgeting predictable vs. revolving credit.
Borrowers who need capital for a business venture, investment opportunity, or down payment on another property. No restriction on use of proceeds once the loan closes.
Self-employed borrowers who can't document income through tax returns. Bank statements, 1099, or P&L all qualify — same as BFF's Non-QM first mortgage programs.
A closed-end second mortgage (which this product is) disburses a fixed lump sum at closing with a set repayment schedule. Once closed, no additional funds can be drawn. A HELOC is a revolving line — the borrower draws, repays, and redraws over a draw period. BFF's product is closed-end only — no HELOC is available. The closed-end structure is better suited to borrowers who need a defined amount for a specific purpose and want a fixed payment schedule.
CLTV is calculated by adding the existing first mortgage balance and the requested second mortgage amount, then dividing the combined total by the property's appraised value. For example: a borrower has a $600K first mortgage on a $1M property. They want a $200K second. Combined balance = $800K. CLTV = $800K / $1M = 80%. That falls within the 90% CLTV tier for ≤$2M combined. Always use the outstanding balance of the first, not the original amount.
Yes. Investment property is an eligible occupancy type. For investment properties, DSCR income documentation is available — the property qualifies based on its rental income relative to the combined PITIA (first + second mortgage payments). No personal income documentation is needed when using DSCR. Full documentation and bank statements are also accepted for investment property if the borrower prefers to qualify on personal income instead.
BFF offers two balloon structures: a 30/15 balloon (payment amortized over 30 years, balance due at year 15) and a 40/15 balloon (payment amortized over 40 years, balance due at year 15). Balloon terms require a minimum $200K loan amount. The lower amortization payment makes balloon terms attractive for borrowers who expect to sell or refinance before year 15. ARMs are not available — all terms on this product are fixed rate.
The BFF closed-end second mortgage is not available in Maryland, Michigan, Texas, or Washington. These four states are completely ineligible — there are no exceptions based on property type, occupancy, or loan amount. Always confirm state eligibility before investing time in a scenario.
BFF Home Equity Matrix — Rev. Sep 2025
MD · MI · TX · WA — completely ineligible. Verify before pricing.
Investment property qualifies on DSCR income — rental income vs. combined first + second PITIA. No personal income docs needed.
Price it in the Quick Pricer, download the matrix, or call your AE. We Deliver.
