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Program 11

Second Mortgage in Lubbock

A Lubbock rental second mortgage that keeps your first.

Our second mortgage program lends $50K to $1M against non-owner-occupied 1 to 4 unit residential investment property worth at least $100,000, including short-term rentals, up to 80% combined loan-to-value, with fixed rates from 6.99%. It is a separate loan, as a lump sum or a line of credit, behind the first mortgage you already have. Texas ties its lien limits to the homestead, so a Lubbock rental that is not your homestead sits outside them, and occupancy gets confirmed rather than assumed. Deals in the city record with the Lubbock County Clerk, and Levelland deals record in Hockley County. Business-purpose only, and every loan is conditional on the borrower and the property, subject to underwriting.

Second Mortgage in Lubbock, 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
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*Typical terms, subject to underwriting and market conditions.

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Local FAQ

Second Mortgage in Lubbock, answered.

Do Texas homestead rules limit a second mortgage on my Lubbock rental?
Not when the rental is not your homestead. Article XVI, section 50 of the Texas Constitution protects a homestead from forced sale except for a short list of debts, and any other lien on it is invalid. The Texas home equity rules come from that list: consent of each owner and each owner's spouse, all homestead debt capped at 80% of value, fees capped at 2% with some exclusions, and foreclosure only by court order. A rental that is not your homestead sits outside section 50. Homestead status turns on use and intent, and a title company may treat your only Texas residential property as homestead by default, so expect occupancy to be checked. This is not legal advice; your attorney or title company has the final say on your property. The Texas investment property second mortgage guide covers the details.

Sources: texaslegalguide.com, mortgagelaw.com

What happens to a second lien on a Lubbock rental if the first is foreclosed?
The second can be wiped out, so the first has to stay current. Texas courts hold that foreclosing a senior lien extinguishes the junior liens behind it. A deed-of-trust lien on a rental that is not a homestead is usually foreclosed outside court under Property Code section 51.002, with notice at least 21 days before a sale held on the first Tuesday of the month. The Lubbock County Clerk publishes a Notice of Trustee Sales page listing filed notices and their sale dates, so a notice filed against a property you own or lend on is public record. That is the risk a second lender prices into leverage, and it is why combined loan-to-value counts every lien. Read lien position explained before you stack debt.

Sources: codes.findlaw.com, lubbockcounty.gov

What does recording a second lien cost in Lubbock County?
$25 for the first page and $4 for each additional page. That is the Lubbock County Clerk's schedule effective January 1, 2024, plus $0.25 for each indexed name past five. A 6-page deed of trust records for $45 ($25 + 5 x $4), an illustration, not a quote for your documents. The first-page fee is set by statute, so it matches other Texas counties. In-person filings go to 904 Broadway, Room 207, weekdays 8:30 a.m. to 4:30 p.m., and the clerk requires photo ID from whoever presents a document for the real property records.

Sources: lubbockcounty.gov

Can a second mortgage go on a Lubbock short-term rental?
Short-term rentals are eligible for the program, but confirm the property's status with the city first. The City of Lubbock registers short-term rentals and collects hotel occupancy tax on them through its online portal. Confirm zoning and registration for your specific property before you count short-term income toward a second payment, and budget for the tax. Subject to underwriting.

Sources: portal.deckard.com

Is a second mortgage on a rental treated like a consumer second in Texas?
Texas draws the line at purpose. Finance Code chapter 342, the state's secondary mortgage loan chapter, applies only 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 money is for and whether you live in the property. We found no Texas regulator guidance on business-purpose seconds specifically, so read this as a description of the statutes, not a licensing opinion. This is not legal advice; your attorney has the final say on your structure.

Sources: texas.public.law

Which school district line matters most to the carry on a Lubbock rental?
The ISD, because it moves the total by about 30 cents per $100 inside the same city. On 2025 rates, a City of Lubbock parcel in Lubbock ISD totals about 1.77 per $100, against about 2.06 in Frenship ISD and 2.07 in Lubbock-Cooper ISD. A rental gets no homestead exemption or cap, so it pays the full stack. Those totals are our arithmetic on the Texas Comptroller's published rates; check the parcel on the Lubbock Central Appraisal District site before you size a second against its rent. Talk to your CPA about your own numbers.

Sources: comptroller.texas.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
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Second Mortgages · 5 min read
Second Mortgage vs HELOC on an Investment Property
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Second Mortgages · 6 min read
Investment Property Second Mortgage Requirements: What Lenders Check
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Browse all guides
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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.

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