Second Mortgage in Frisco

Not when the rental is not your homestead. Article XVI, section 50 of the Texas Constitution allows liens on a homestead only for a closed list of debts, and a lien outside that list is invalid. The Texas home equity rules come from that list: consent of each owner and spouse, an 80% cap on all homestead debt against value, a 2% fee cap with some exclusions, and foreclosure only by court order. They protect the homestead, not a rental you do not live in. Homestead status turns on use and intent, and title companies can treat a borrower's only Texas residential property as homestead by default, so expect occupancy to be confirmed, not assumed. This is not legal advice; your attorney or title company has the final say on your property. Terms are on the second mortgage program page.

In Collin County, $25 for the first page and $4 for each additional page. Collin's land recording schedule, effective January 1, 2024 and revised March 19, 2026, lists deeds of trust under that fee. A 12-page deed of trust would record there for $69 ($25 + 11 x $4), an illustration, not a quote for your documents. Electronically filed documents need a 2-inch by 4-inch blank space at the bottom of the last page for the certification label, and the Plano and McKinney clerk offices are open 8:00 a.m. to 4 p.m. on weekdays. On the Denton County side of Frisco, the county's fee schedule page, as read in August 2026, lists $25 for the first page plus a required $4 recording information page and $4 for each additional page, and Denton accepts eRecording through CSC, ePN and Simplifile. The Texas Constitution bars a transfer tax on a conveyance of fee simple title, and we found no Texas tax on recording a mortgage.

On the courthouse steps in McKinney, and a senior sale can wipe the second out. Collin County holds trustee sales on the steps of the Collin County Courthouse at 2100 Bloomdale Road, McKinney, on the first Tuesday of the month. Property Code section 51.002 requires at least 21 days of notice and a sale between 10 a.m. and 4 p.m. Texas courts have held that foreclosure of a senior lien extinguishes junior liens, so a second only holds while the first mortgage stays current. Check your first mortgage before you add a second: the Fannie Mae and Freddie Mac 1-4 Family Rider used on investment property bars any inferior lien without the first lender's prior written permission. Read lien position explained before you stack debt.

A city short-term rental permit, renewed every year. Frisco requires a permit for any dwelling rented for less than 30 days, from single-family homes and duplexes through fourplexes and multifamily. Each property is registered in the city's Neumo portal with a Guest Safety Information Checklist and a floor plan, the permit number must appear in every listing, and hotel-motel-short-term rental occupancy tax is remitted monthly. The fee is $300 to apply and $300 a year to renew, under Ordinance 2025-09-48, effective October 1, 2025. The city warns that an unregistered rental risks fines and a ban on registering the property in the future. The program counts short-term rentals as eligible, subject to underwriting.

Texas draws the line at purpose. The state's secondary mortgage loan chapter (Finance Code chapter 342) applies to loans extended primarily for personal, family or household use, and the residential mortgage licensing chapters define a covered loan the same way. Whether a loan is business purpose depends on its facts, which is why we ask what the funds are for and whether you live in the property. We found no Texas regulator guidance that speaks to business-purpose seconds directly, so this is not a licensing opinion. Talk to your attorney about your own structure.

The full rate plus any district assessment, with no homestead relief. An investor-owned rental gets no homestead exemption and no 10% appraisal cap. For 2025, Frisco with Frisco ISD carried a combined 1.675480 per $100 of value, against 2.015864 in Celina. On a rental valued at $500,000, the Frisco rate works out to about $8,377 a year ($500,000 / 100 x 1.675480), an illustration, not your bill. Public improvement district assessments show as 0.000000 on every Collin County rate table, so pull the assessment roll for the parcel rather than trusting the rate sheet. Test the payment with the second mortgage calculator, and talk to your CPA about the tax side.