Direct private lending in most states
Call us anytime at 512-617-9400
Apply now
Program 11

Second Mortgage in Denton

A second mortgage on your Denton County rental.

Our second mortgage program is a separate fixed-rate loan from $50K to $1M, as a lump sum or a line of credit, on non-owner-occupied 1 to 4 unit residential investment property worth at least $100,000, including short-term rentals. Your first mortgage stays where it is, and combined loan-to-value across every lien goes up to 80%, with rates from 6.99%. A rental that is not your homestead sits outside the Texas home equity rules, and we confirm occupancy rather than assume it. Deals in Denton, Lewisville and Flower Mound record with the Denton County Clerk. Business-purpose only, and every loan is conditional on the borrower and the property, subject to underwriting.

Second Mortgage in Denton, TX from USA Mortgage
$1M
max loan
80%
max CLTV
660
min FICO
3-4 weeks
to close

Typical figures, subject to underwriting and market conditions. Not a commitment to lend.

How it works

We lend against the equity in a rental you already own, as a lump-sum second or a line of credit, so your first mortgage and its rate stay in place. Combined loan-to-value, counting every lien, goes up to 80%, subject to underwriting. Check that your first mortgage allows a junior lien.

Who it's for
Rental owners who want to keep their first mortgage
Investors funding a down payment or renovation
Non-owner-occupied investment property only, including short-term rentals
Individuals and entities, such as an LLC
Borrowers with a 660 or higher credit score
Business-purpose use of the funds
Typical terms
Loan amount$50K to $1M
Lien positionFirst or second
Max CLTVUp to 80%
Min FICO660
RateFrom 6.99%*
Rate typeFixed
StructureLump sum or line of credit
Min DSCR1.00
Property1-4 units, $100K+ value
Prepay penalty0 to 5 years
Closing3-4 weeks
Apply now

*Typical terms, subject to underwriting and market conditions.

Run your Second Mortgage numbers.

Pressure-test the deal in seconds with our free second mortgage calculator, no sign-up required.

Open the Second Mortgage calculator
Local FAQ

Second Mortgage in Denton, answered.

Can I take a second mortgage on a Denton rental under Texas homestead law?
Yes, when the rental is not your homestead. Article XVI, section 50 of the Texas Constitution limits liens on a homestead to a closed list, and the home equity rules on that list (consent of each owner and spouse, all homestead debt capped at 80% of value, a 2% fee cap with exclusions, foreclosure only by court order) are homestead protections. A rental you do not occupy falls outside them, and a second lien on it is an ordinary deed-of-trust lien. Homestead turns on use and intent, and a title company may treat your only Texas residential property as homestead by default, so occupancy gets verified. This is not legal advice; your attorney or title company has the final say. See the second mortgage program page for terms and the Texas investment property second mortgage guide for the detail.

Sources: texaslegalguide.com, mortgagelaw.com

What does it cost to record a deed of trust with the Denton County Clerk?
$25 for the first page, a required $4 recording information page, and $4 for each added page. That is the schedule as published by the Denton County Clerk, accessed October 2026; the page prints no effective date, and it counts any print on the back of a sheet as a page. A 6-page deed of trust would record for $49 ($25 + $4 + 5 x $4), an illustration, not a quote for your documents. The schedule carries no transfer tax or documentary stamp. Electronic filings go only through an approved eRecording partner such as Simplifile, and the county publishes no turnaround or cutoff, so build the recording step into your closing plan with your title company. The Recording Division at 1450 E McKinney Street is open 8 a.m. to 4:30 p.m. weekdays. These are county fees, not USAM terms.

Sources: dentoncounty.gov

What happens to a second lien on a Denton County rental if the first is foreclosed?
A senior foreclosure can extinguish the second, so the first has to stay current. Denton County holds its mortgage foreclosure auction on the first Tuesday of each month, at a site designated by Commissioners Court order, which the county designation page placed at the southwest corner of the Courts Building at 1450 E McKinney Street when we read it in August 2026. Each notice of sale gives the time, and posting a notice with the clerk costs a flat $2. State law requires at least 21 days of notice and a sale between 10 a.m. and 4 p.m. under Property Code section 51.002, and the Texas Supreme Court has held that foreclosure of a senior lien extinguishes inferior liens. That is the reason combined loan-to-value counts every lien. Putting a second lien behind a DSCR or conventional first covers what to check on your existing loan.

Sources: dentoncounty.gov, codes.findlaw.com

What are the City of Denton's short-term rental rules?
Registration is mandatory at $100 a year, and residential districts are capped. In the RR and R1 through R7 districts the city allows 1,000 registrations citywide, 2 per parcel, with 100 feet between short-term rentals; none are allowed in Light Industrial, Heavy Industrial or Public Facilities zoning. In multifamily and mixed-use buildings no more than 10% of units may register, with a minimum of 2. A 7% city hotel tax applies, and the stricter zoning rules took effect January 1, 2025. Texas has no statewide short-term rental preemption, so rules differ from city to city in the county; check with the city where your rental sits. Short-term rentals are eligible for our second mortgage, but confirm your registration and zoning before you count on that income to carry a second payment.

Sources: cityofdenton.com

Is a business-purpose second on a Denton rental covered by Texas consumer mortgage law?
Texas defines its consumer second-lien and residential mortgage rules by purpose. Finance Code chapter 342, the secondary mortgage loan chapter, applies only to a loan extended primarily for personal, family or household use (among other conditions), and the residential mortgage licensing chapters use the same personal, family or household test. A loan's purpose depends on its facts, so we ask what the funds are for and whether you live in the property. We found no Texas regulator guidance addressing business-purpose seconds directly, so this describes the statutes and is not a licensing opinion. Talk to your attorney about your own structure.

Sources: texas.public.law

What should I check on property taxes for a Denton County rental before borrowing?
The full special-district stack at the exact address. A rental gets no homestead exemption or cap, and along the US-380 belt some neighborhoods sit inside water districts that add their own levy; Paloma Creek, for one, sits in five Fresh Water Supply Districts. Every added levy comes out of the cash flow that has to cover a first and a second payment. Pull the parcel's taxing units from the appraisal district and talk to your CPA before you size the loan. The second mortgage calculator shows the payment side.

Sources: 8a.palomacreek.org, dentoncounty.gov

More Second Mortgage questions, answered on the program page

Resources

Guides for Second Mortgage

Second Mortgages · 6 min read
What Is a Second Mortgage on an Investment Property?
Read the guide
Second Mortgages · 6 min read
Second Mortgage vs Cash-Out Refinance on a Rental Property
Read the guide
Second Mortgages · 5 min read
Second Mortgage vs HELOC on an Investment Property
Read the guide
Second Mortgages · 6 min read
Investment Property Second Mortgage Requirements: What Lenders Check
Read the guide
Browse all guides
More in Denton

Other programs in Denton

Fix and FlipUp to 90% / 100% rehabRental / DSCR30-yr fixed, DSCR from 0.75Ground-Up ConstructionUp to 70% LTV, most statesCRE BridgeUp to $10M, 24-36 moTransactional FundingSame-day double-close capitalBank Statement / No-DocNo tax returns requiredConventional InvestmentNon-owner-occupied investmentPortfolio LoansMultiple properties, one loanCRE PermanentLong-term agency & permSBA Financing7(a) & 504 placement
All Denton loan programs
About the local figures on this page

Local rules move. Every tax rate, fee, ordinance and market figure here comes from a primary source and carries the date we read it, and we correct them as the rules change. Where a number is mid-change or we could not verify it, we say so rather than guess. Before you commit a budget, confirm anything that drives it with the city or county, and talk to your attorney or CPA on questions of law or tax.

Published by USA Mortgage Funding, LLC, NMLS #152588. Researched from primary sources by our team, drafted with AI assistance, and every figure checked against its source before publishing. Where an answer rests on a public record, that record is linked under it. Figures read on 2026-08-12.

Funding Denton deals fast.

Get real terms, usually same day. No obligation, no hard credit pull to start.

Apply nowTalk to us