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Program 01

Second Mortgage in Pueblo

Second mortgage on a Pueblo rental, first loan in place.

Our second mortgage lends $50K to $1M against a 1-4 unit rental worth $100K or more, up to 80% combined loan-to-value at fixed rates from 6.99%, and your first mortgage stays in place. Pueblo deals record in Pueblo County, where foreclosure runs through the county Public Trustee. Business purpose only, subject to underwriting.

Second Mortgage in Pueblo, CO 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. The prepayment penalty runs 0 to 5 years. 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
Max CLTVUp to 80%
RateFrom 6.99% fixed*
Min FICO660
Property1-4 units, $100K+ value
Closing3-4 weeks
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*Typical terms, subject to underwriting and market conditions.

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Local FAQ

Second Mortgage in Pueblo, answered.

Does Colorado's homestead exemption reach a second mortgage on my Pueblo rental?
Not on a rental you do not live in. Colorado's homestead exemption applies only while the property is occupied as a home by the owner or the owner's family, and the exemption amount depends on that occupancy as well. A rental in Pueblo or Pueblo West leased to tenants carries no homestead exemption. Occupancy is a fact question, so expect it to be confirmed, not assumed. This is not legal advice; your attorney or title company has the final say on your property.

Sources: colorado.public.law

What happens to a second lien on a Pueblo rental if the first is foreclosed?
The second is wiped out unless its holder files a notice of intent to redeem within 8 business days of the sale. Pueblo foreclosures go through the Public Trustee in Pueblo County under Colorado law: a court order under Rule 120, and a non-agricultural sale set 110 to 125 calendar days after the notice of election and demand is recorded. A second recorded before that notice gets mailed notice, but only if its recorded deed of trust carries an address. The owner has no redemption right after the sale; only junior lienors can redeem. Any overbid goes, in recording order, only to junior lienors who filed that notice, and once redemption ends the title is free of liens junior to the one foreclosed. Read lien position explained before you stack debt.

Sources: colorado.public.law

What does recording a second deed of trust cost in Pueblo County?
Colorado's flat $43 per-document recording fee, and no documentary fee on a deed of trust. A 2024 state law replaced per-page recording fees with a flat fee per document from July 1, 2025: $40 plus $3 in surcharges. Per the county, Pueblo County follows it. Colorado's documentary fee applies to deeds that convey title, and the statute exempts any document given to secure payment of a debt, which is what a deed of trust is. Confirm the current figure with the Pueblo County Clerk and Recorder before closing. These are county and state charges, not USA Mortgage fees.

Sources: leg.colorado.gov, colorado.public.law, pueblocounty.gov

How do property taxes differ across Pueblo before I add a second payment?
City limits and Pueblo West each add their own levy, so check which one the parcel sits in. The City of Pueblo levies 15.633 mills for budget year 2025. Pueblo West is not an incorporated town; it is governed by the Pueblo West Metropolitan District, which supplies water, runs parks and recreation, and levies 20.230 mills, a rate the district says it has not raised in over thirty years. A property in unincorporated Pueblo County outside Pueblo West carries neither. Pull the parcel's actual levy from the Pueblo County Assessor before you size a second payment. Talk to your CPA about your own numbers.

Sources: pueblo.us, pueblowestmetro.us

Is a second mortgage on a rental treated like a consumer loan in Colorado?
Colorado draws the line at purpose. The state's mortgage loan originator law covers a residential mortgage loan, defined as one primarily for personal, family or household use secured by a dwelling of four or fewer units, and it makes no first-versus-junior distinction. The Uniform Consumer Credit Code says a consumer loan does not include a loan for a business, investment or commercial purpose. We found no Division of Real Estate or UCCC Administrator guidance on business-purpose seconds, so this is not a licensing opinion. That is why we ask what the funds are for. Talk to your attorney about your own structure.

Sources: colorado.public.law

What happens to my second mortgage if I refinance the first on a Pueblo rental?
The second-lien holder generally has to sign a resubordination agreement. No Colorado statute was found that keeps a junior lien in place when the first is refinanced. Equitable subrogation, the doctrine that can move priority, is one the Colorado Supreme Court calls a narrow exception to the Recording Act; in Hicks v. Londre it applied because the buyers and their new lender had no actual knowledge of the other lien and were not negligent in failing to discover it. A refinancing lender that knows about your recorded second cannot count on it and will usually ask for resubordination. Your first mortgage's documents may also require that lender's consent before any junior lien. See a second lien behind a DSCR or conventional first. This is not legal advice.

Sources: coloradojudicial.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?
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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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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 2026-08-28.

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