Finding the best second mortgage lenders requires more than a quick Google search — not all banks, credit unions, and mortgage companies offer home equity loans and HELOCs, and the rates and terms between lenders vary far more than most homeowners expect. The best 2nd mortgage lenders in 2026 offer competitive fixed rates starting around 7.47% on home equity loans and variable HELOC rates as low as 7.04% nationally — but qualifying for those rates requires working with lenders who specialize in subordinate financing rather than walking into a general-purpose bank branch.

Second mortgage brokers play a particularly valuable role here, giving borrowers access to dozens of lenders through a single application rather than applying one at a time. For over 15 years, the RefiGuide has matched homeowners with best second mortgage lenders, private brokers and HELOC companies that specialize in unique niche market of home equity subordinate financing in 2026.

Top Ranked Second Mortgage Lenders in 2026

2nd mortgage company

Today, you will find the most competitive equity loans and HELOCs online from the best second mortgage lenders, banks, brokers and credit unions in the country.

The RefiGuide works with over 50 home equity lenders, including many of the largest banks in the United States. Here are the Top Ranked 2nd Mortgage Lenders and Brokers in 2026 with Verified NMLS Numbers.

Lender · NMLS # Starting Rate · Loan Type Max CLTV · Min. Credit Best For
Figure Lending ⭐ NMLS #1717824 6.55% fixed for life · fixed-rate HELOC 95% CLTV · 620 min. Fastest 2nd mortgage — funds in 5 days · $0 closing costs · no appraisal · fixed rate
Bank of America NMLS #399802 6.90% · HELOC variable 85% CLTV · 680 min. Existing BofA customers · up to $1M line · $0 fees · Preferred Rewards rate discount
Navy Federal Credit Union NMLS #399807 · Military only Competitive · HELOC variable 95% CLTV · no stated min. Military & veterans · 95% CLTV + 20-year draw · $0 closing costs · best military terms
Rocket Mortgage NMLS #3030 8.00%+ · home equity loan 90% CLTV · 680 min. Fully digital close · $45K–$500K · J.D. Power #1 satisfaction · all 50 states
loanDepot NMLS #174457 7.25% · HELOC variable 85% CLTV · 680 min. Lifetime Guarantee on future refi · 200+ branches · HELOC + HEL both available
Nations Lending Corporation NMLS #32416 · Independence, OH 7.25%+ · HEL + HELOC + cash-out refi 85% CLTV · 580 min. Full-service 2nd mortgage lender · FHA & VA specialist · all 50 states · Top Workplace USA 2024
New American Funding NMLS #6606 7.17% · HELOC variable 85% CLTV · 580 min. Lowest credit floor among national lenders · DTI up to 57% · 14-day close
Spring EQ NMLS #1464945 7.99%+ · home equity loan 90% CLTV · 640 min. High CLTV up to 90% · both HEL and HELOC · up to $500K · 14-day minimum close
TD Bank NMLS #399789 · East Coast focus Below prime · HELOC variable 89% CLTV · 660 min. East Coast borrowers · fixed-rate lock option · in-person branches · 10-year draw period
U.S. Bank NMLS #402761 7.50%+ · HELOC variable 80% CLTV · 660 min. $0 closing costs on HELOC · $5K minimum draw lock · 47 states · relationship discounts
Connexus Credit Union NMLS #236490 · membership req. 4.99% intro to Oct 1, 2026 · HELOC 90% CLTV · 640 min. Lowest intro HELOC rate on this list · 15-year draw period · $0 closing costs
Golden 1 Credit Union NMLS #669333 · CA members 7.00% · HELOC (4.99% intro 6 mo.) 90% CLTV · 660 min. Jumbo HELOC up to $1M · best for CA high-value properties · $0 closing costs
Carrington Mortgage Services NMLS #2600 9.50%+ · Non-QM HEL 80% CLTV · 500 min. Lowest credit floor on this list · bad credit 2nd mortgage · prior bankruptcy OK

Second mortgage companies offer credit lines and loans that let you tap your home’s equity to pay for things that you may not have enough cash for in your savings account. You can choose to get either a home equity line of credit (HELOC) or a traditional home equity loan, also known a second mortgage loan. The RefiGuide can help you shop for the best HELOC lenders and compare rates and closing costs. (Please be aware that private 2nd mortgage lenders are different than second chance mortgage lenders who offer high risk unsecured personal loans.)

These 2nd-mortgage brokers and lenders specialize in a diverse home equity loan programs nationwide, so you find today’s fixed 2nd mortgages loans HELOCs that meets your financing needs.

NMLS numbers verified from official lender licensing disclosures — verify at nmlsconsumeraccess.org. Starting rates reflect best available for 700+ FICO, 80% CLTV, primary residence as of March 30, 2026. National avg home equity loan rate: 7.85% (5-yr), 8.00% (10-yr) per Bankrate March 25, 2026. National avg HELOC rate: 7.04% per Bankrate March 25, 2026. Rates, CLTV limits, and terms subject to change — verify directly with each lender before applying. Updated March 30, 2026.

What the Best Second Mortgage Lenders Are Looking for in 2026

Finding the right 2nd mortgage lender comes down to more than the interest rate. With national average home equity loan rates at 7.85% (5-year) and HELOC rates at 7.04% as of March 2026 (Bankrate), the spread between the best and worst lenders is significant enough to cost — or save — thousands over the life of your loan. Here is what to evaluate before you commit.

Key Criteria When Comparing 2nd Mortgage Companies

Eligibility Requirements: Confirm the lender’s minimum credit score, debt-to-income ratio limit, and maximum CLTV before applying. Most traditional lenders require a 620–680 minimum FICO and a CLTV of 80%–85%. Meeting the minimum gets you in the door — exceeding it gets you a better rate. There are still companies offering bad credit second mortgages for borrowers with scores between 500 and 619.

Loan Limits: Verify the lender’s minimum and maximum loan amounts match your borrowing needs. Many lenders have minimums of $25,000–$35,000 and caps of $500,000–$1,000,000. If your needs fall outside that range, move on.

Rate vs. Total Cost: Always compare APR — not just the interest rate. A lender offering a lower 2nd-mortgage rate with higher fees may cost more than one with a slightly higher rate and zero closing costs. Run the math on total cost over your expected loan term.

Closing Costs: Budget 2%–5% of the loan amount for closing costs unless you are working with a credit union or online lender offering zero-cost options. A $100,000 home equity loan can carry $2,000–$5,000 in fees — factoring this into your rate comparison is essential.

8 Tips to Find the Best 2nd Mortgage Lender

#1 — Compare APR, Not Just Rate Get quotes from at least three lenders and compare the full APR — which includes the interest rate, origination fees, points, and other costs. A “no-fee” loan is rarely free — the costs are typically embedded in a higher rate. The lender with the lowest APR wins, not the one with the lowest advertised rate.

#2 — Talk Directly to the Loan Officer The loan officer handling your file matters as much as the lender’s brand. Ask for their NMLS license number, verify it at nmlsconsumeraccess.org, ask how many second mortgages they have closed in the past year, and read recent reviews. A skilled loan officer at a mid-tier lender often outperforms an inexperienced one at a top-ranked bank.

#3 — Budget for All Closing Costs Fixed home equity loans typically include title insurance, real estate transfer taxes, and escrow setup. HELOCs may have annual fees, inactivity fees, and early closure penalties. Request a full Loan Estimate — not just a rate quote — before comparing lenders.

#4 — Verify the Lender Offers Your Specific Program Not every 2nd mortgage lender offers every program. Confirm your lender supports your property type, occupancy status, and loan purpose before investing time in an application. LTV caps, minimum draws, and draw period lengths also vary significantly between lenders.

#5 — Know Your Credit Score Before You Apply Borrowers with 700+ FICO access the widest range of lenders and the best rates. Below 660, your options narrow and your rate premium increases. Pull your free credit report at AnnualCreditReport.com before shopping — and dispute any errors at least 60 days before applying.

#6 — Decide: Pay Points Now or Take a Higher Rate? If you plan to keep the loan for 7+ years, paying discount points upfront to buy down your rate often makes financial sense. If you expect to sell or refinance within 3–5 years, a no-point, slightly higher rate is usually the better choice. Run the break-even calculation — divide the cost of the points by the monthly savings to see how long it takes to recoup them.

#7 — Understand What Happens After You Apply Before submitting an online application, confirm when the lender will do a hard credit pull, who will contact you and when, and how many lenders will receive your information. A hard pull affects your credit score — knowing the timeline lets you manage multiple applications within a 14-day rate-shopping window, which most credit scoring models treat as a single inquiry.

#8 — Self-Employed Borrowers: Ask About Manual Underwriting Automated underwriting systems frequently decline self-employed applicants despite strong income, because the system reads net income after deductions — not gross revenue. Ask every lender upfront whether they offer manual underwriting for self-employed borrowers. Ask about stated income home equity lines of credit as there are brokers and private lenders still offering these niches. Also ask about bank statement HELOC loan programs, which qualify income using 12–24 months of deposits rather than tax returns.

Credit, Loan to Value (LTV) and Income Requirements for Second Mortgage Loans

Home owners who want to pull cash out of their home for things they need may want to get second mortgages in the coming year. Interest rates were near record lows just a few years ago, and home values continue to soar. Since interest rates have been rising, home equity loans makes more sense than a cash out refinance for homeowners to use some of their home’s equity to get things they want or need, such as a home renovation, car, pay for a college education and other big-ticket items.

  • Credit Scores Range from 600-800
  • Loan to Value requirements range from 50-90% 
  • Debt to Income Less than 45% (a few 2nd mortgage lenders allow up to 50%)

It is important to note however that you need to qualify for the home equity loan; they do not just hand them out anymore as they did a decade ago. There also are some risks with inherent second mortgages to be aware of. Below is all you need to know about getting a second mortgage in 2026.

What Second Mortgage Lenders Are Offering Today to Qualified Homeowners

second mortgage companies

The majority of Americans get a mortgage to purchase their home.

After you have made some progress in paying down your home loan, you may opt to get a second mortgage on the home.

This is just another home loan that you can get to access your equity for a variety of purposes. Without a 2nd-mortgage, that equity is not available to you until you sell the house.

There are two types of second mortgage options:

Home equity line of credit (HELOC): This is a line of credit that works very much like a credit card. However, in this case, your credit line is the equity in your home. Check to see what the credit score requirements are for a HELOC today. You can opt to pull out cash on this credit line as needed. A HELOC credit line features an adjustable rate that can go up in future years. It usually is low at first because you are only paying interest on the loan. As time goes on, you need to pay on principal, and rates can also go up. So, bank on your home equity line payments going up as the years pass. When it the rates go up or when you draw period expires, consider a HELOC refinance,

Home equity loan with a fixed rate: This 2nd mortgage offers a lump of cash that you receive at once from your home’s equity. Sometimes, you may have to pay a higher fixed rate than a HELOC, but you do know exactly how much you will be paying until the loan is paid in full. Many borrowers prefer the steady nature of a second mortgage with a fixed rate and fixed monthly payment set on a precise amortization schedule.

Why Do Borrowers Want Second Mortgages?

Unless you have a lot of equity and an amazingly high credit-score, the chances are pretty slim that you can stroll into your local bank and take out a second loan.  Let’s examine current 2nd-mortgage offers that are helping out the “average-borrower” today.

  • Home Equity Loans with Fixed Monthly Payments
  • Interest Only Payment Option Home Equity Lines
  • Debt Consolidation with Lower 2nd Mortgage Payments
  • Avoid Down Payment Requirements with Second Mortgages
  • Fixed Interest Rate Protects Monthly Payments
  • Work with Companies that Waive Origination Fees
  • Cash Out to Purchase Investment Properties
  • Avoid Private Mortgage Insurance or PMI

Homeowners who have a need for cash to fund life expenses, such as a home remodel or college tuition payments, may decide to take out a home equity loan secured by their home in 2026 and here are a few things they need to know. Getting access to cheap money with a 2nd mortgage make home improvements is a sweet luxury for millions of homeowners.

Best Bet to Get a Second Mortgage That Makes Sense

You can choose from thousands of US lenders to get a second mortgage. There is no need to use the same lender as did your first mortgage. In fact, you will usually be better off if you shop around for rates and terms with several home equity lenders. We recommend checking your bank, credit union and a second mortgage broker with access to many HELOC and 2nd mortgage programs.

Get Help Locating 2nd Mortgage Lenders Today Offering the Best 2nd Mortgage Rates Online

To apply for a second mortgage, you will undergo a similar process as when you got your first mortgage. The underwriter for the mortgage company will go over your credit, assets and debt. If you have good enough credit, you may be able to get an 80-85% LTV second mortgage. Make sure that you have been paying your first mortgage on time!

FAQ: Second Mortgage Lenders & Brokers

Who are the best second mortgage lenders in 2026?

The best second mortgage lenders in 2026 include Figure Lending (fastest funding at 5 days, fixed-rate HELOC from 6.55%), Bank of America (up to $1M line, $0 closing costs), Navy Federal Credit Union (95% CLTV for military members), Rocket Mortgage (fully digital close), and New American Funding (580 minimum credit score). The right lender depends on your credit score, equity position, loan amount, and whether you need a fixed home equity loan or a revolving HELOC. Always compare APR — not just the interest rate — across at least three lenders before applying.

What is the difference between second mortgage lenders and second mortgage brokers?

Second mortgage lenders fund loans directly from their own capital — banks, credit unions, and online lenders like Rocket Mortgage and Figure fall into this category. Second mortgage brokers act as intermediaries, submitting your application to multiple lenders simultaneously to find the best rate and terms. Brokers are particularly valuable for borrowers with complex financial profiles — self-employed income, lower credit scores, or high DTI — because they have access to wholesale rates and niche programs that consumers cannot access directly. Brokers must be NMLS-licensed; always verify their license at nmlsconsumeraccess.org before proceeding.

How do I find the best second mortgage broker near me?

The most reliable way to find a reputable second mortgage broker is to verify their NMLS license at nmlsconsumeraccess.org, check Google and Trustpilot reviews specifically for second mortgage or HELOC experience, and ask directly how many second mortgages they have closed in the past 12 months. A broker who primarily originates purchase loans may have limited experience with subordinate financing underwriting requirements. RefiGuide has matched homeowners with NMLS-licensed 2nd mortgage lenders and brokers for over 15 years at no cost — giving borrowers access to competitive rates across banks, credit unions, and Non-QM lenders nationwide.

Can I Get a Second Mortgage with a Different Lender?

Yes. You are not required to take out an equity loan or HELOC with the lender that services your first mortgage. We strongly suggest shopping 2nd-mortgage lenders and HELOC brokers so you can make a wise decision.

Should I go to a bank or second mortgage lender for a home equity loan?

It depends on a few factors like, how big the loan amount is, what type of equity loan or HELOC you are looking for and what your credentials are ie. LTV, DTI and credit score. If you have perfect credit and only need a small home equity loan, less than $25,000, a look credit union or bank may offer you a great interest rate with limited fees and closing costs. If you are looking for a larger 2nd mortgage loan amount between $25,000 and $1,000,000, or you don’t have perfect credit, then a private second mortgage lender may be the best choice for your situation.

What credit score do I need to qualify with second mortgage companies in 2026?

Most second mortgage companies require a minimum credit score of 620–660 for conventional home equity loans and HELOCs in 2026. Borrowers with 700+ FICO access the widest lender selection and the best rates — currently as low as 6.55% on fixed-rate HELOCs. Borrowers with 580–619 can still qualify through Non-QM lenders like Carrington Mortgage and New American Funding, though rates will be higher. Below 580, options are limited to hard money lenders and private equity lenders. Improving your score by even 20–40 points before applying can save thousands in interest over the loan term.

What are current second mortgage rates from top 2nd mortgage lenders?

As of March 30, 2026, national average second mortgage rates are 7.85% for a 5-year fixed home equity loan, 8.00% for a 10-year fixed, and 7.04% for a variable HELOC — per Bankrate’s weekly national lender survey. Well-qualified borrowers (700+ FICO, 80% or lower CLTV) are finding rates as low as 6.55% through online lenders and 4.99% introductory rates at select credit unions. 2nd mortgage lenders vary significantly in pricing — comparing at least three lenders can save $1,200 or more per year according to Freddie Mac research. Rates are near 3-year lows as of March 2026.

How Long Does It Take to Get a 2nd Mortgage or Home Equity Loan?

You may be able to close on your home equity loan or HELOC within a few weeks, but not always. In many cases, the process can take up to two months, especially if you are self-employed and need to document your income with tax returns or bank statements.

Factors like the timing of the home appraisal and the underwriting process are often beyond your control and can significantly affect the timeline. If you the lender is able to use a desktop appraisal or AVM the process could be automated. Full URAR appraisals take longer to receive and more time to for the underwriters to review. The duration of these steps can vary depending on the appraiser and 2nd mortgage lender.

What to Know When Shopping Top Second Mortgage Lenders Online

When evaluating lenders for home equity loans and HELOCs consider the following factors:

2nd Mortgage Rate: To minimize your overall loan cost, compare quotes from multiple traditional and private second mortgage lenders to find the lowest interest rate for your desired loan amount and repayment term.
Closing Costs: Choose for a home equity lender with low or no closing costs to reduce your upfront expenses and keep your total borrowing costs down.
Customer Service: Choose a 2nd mortgage company that provides excellent customer service, ensuring they address all your questions thoroughly and promptly.

Getting affordable financing from a trusted 2nd mortgage lender can be a great way to improve your finances and pay for things you need. Just follow our above tips and you should be able to find perfect home equity lenders or second mortgage bankers for your situation. Do not forget to take your time and consider if now is the right time for you to make a financial commitment secure by your house.

Last Updated: March 29, 2026 by Bryan Dornan, Mortgage Lending Expert and Founder of RefiGuide.org.

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