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Program 11

Second Mortgage in Midland

A Midland rental second mortgage, your first left in place.

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 Midland or Odessa rental that is not your homestead sits outside them, and occupancy gets confirmed rather than assumed. Midland deals record in Midland County and Odessa deals in Ector County. Business-purpose only, and every loan is conditional on the borrower and the property, subject to underwriting.

Second Mortgage in Midland, 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 Midland, answered.

Do Texas homestead rules limit a second mortgage on my Midland 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 Midland or Odessa 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. A commissioners court may designate a sale area other than the courthouse door. Filed trustee notices in Ector County place Odessa sales at the Ector County Courthouse, 300 N. Grant, in the area the commissioners court designated, and the notice itself names the place. Do not confuse these with appraisal district tax sales, which run on their own calendars. Read lien position explained before you stack debt.

Sources: codes.findlaw.com, ectorcountytx.gov

What does recording a second lien cost in Midland and Ector Counties?
$25 for the first page and $4 for each additional page in both counties. A 6-page deed of trust records for $45 ($25 + 5 x $4), an illustration, not a quote for your documents; each indexed name past five adds $0.25, and Ector also charges $4 per attachment or rider. The first-page fee is set by statute, which is why the counties match. Midland County records at 500 N. Loraine Street, 4th Floor, and says it stops recording at 4 PM. Midland also charges double the filing fee for a page that does not meet its recording standards, so have your title company check the document before it goes in.

Sources: co.midland.tx.us, ectorcountytx.gov

Can a second mortgage go on a Midland short-term rental?
Short-term rentals are eligible for the program, and Midland registers and taxes them. The City of Midland has owners register through its Host Compliance portal and pay 7% hotel occupancy tax quarterly. The city treats it as a registration and tax account, not a permit, and defines a short-term rental business as one earning 80% of gross receipts from stays of 30 consecutive days or less. Confirm your property's status with the city before you count short-term income toward a second payment. Subject to underwriting.

Sources: midlandtexas.gov

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

How much can Permian Basin rents move, and why does that matter before a second?
A lot, and fast. Zillow's rent index for the Midland metro fell about 26% from peak to trough in the 2020-21 oil crash, recovered by 2025, and was down 3.6% year over year in June 2026; Odessa was down 4.0%. A second payment sits on top of the first, so test your rent roll at a lower number than today's before you borrow. Budget the full tax bill as well, since a rental gets no homestead exemption: a City of Midland parcel in Midland ISD stacks to about 1.47 per $100 on 2025 rates before any utility district, per the appraisal district's 2025 rate table. Subject to underwriting.

Sources: files.zillowstatic.com, midcad.org

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?
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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 2026-08-13.

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