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Program 11

Second Mortgage in Stillwater

Stillwater second mortgage loans, with your first mortgage kept.

Our second mortgage program covers non-owner-occupied 1 to 4 unit residential investment property, including short-term rentals, worth at least $100,000. It is a separate fixed-rate loan, as a lump sum or a line of credit, behind your first mortgage, which stays in place. Oklahoma's homestead protection follows the owner's principal residence, so a Stillwater rental that is not your homestead sits outside it, and occupancy gets confirmed rather than assumed. Stillwater deals record with the Payne County Clerk, and the city licenses every short-term rental. Business-purpose only, and every loan is conditional on the borrower and the property, subject to underwriting.

Second Mortgage in Stillwater, OK 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 Stillwater, answered.

Does Oklahoma's homestead law affect a second mortgage on my Stillwater rental?
Not when the rental is not your homestead. The Oklahoma Constitution protects the homestead, the owner's principal residence, from forced sale, and even then allows a consensual mortgage on it. A Stillwater rental you do not live in is outside that protection, and the spousal signature rule in 16 O.S. 4(A) reaches only the homestead. The exception to watch is a home you moved out of: under 31 O.S. 2(E), a temporary renting of the homestead does not change its character when no other homestead has been acquired. That is why occupancy and homestead status get verified at underwriting. This is not legal advice; your attorney or title company has the final say on your property. See the second mortgage program page for terms.

Sources: oksenate.gov, oklegislature.gov

What does it cost to record a second mortgage in Payne County?
The Payne County Clerk's posted schedule lists $18.00 for the first page of a mortgage and $2.00 for each additional page. The clerk notes the figures are for estimating and to contact the office for final pricing, and a non-conforming instrument costs more: $35.00 for the first page and $10.00 for each additional page. On top of recording, Oklahoma taxes every real estate mortgage, a second included, under 68 O.S. 1904, on a scale set by the loan's term: $0.10 per $100 for a mortgage of five years or more, stepping down to $0.02 per $100 for one under two years. The statute sets the treasurer's certification fee at $10, and one third-party listing shows a different figure, so confirm with the clerk. As an illustration, not a quote for your loan: a $100,000 second with a term of five years or more carries $100 in tax ($100,000 / $100 x $0.10) plus the $10 fee, and a conforming 12-page mortgage records for $40 ($18 + 11 x $2).

Sources: countyclerk.paynecounty.org, deeds.com, oklegislature.gov

What happens to a second lien on a Stillwater rental if the first is foreclosed?
A properly noticed second is cut off, and it is paid only from any surplus after the first. Oklahoma's power-of-sale statute requires the notice of sale to name every lienholder of record the lender seeks to cut off, and the deed conveys the property clear of later-recorded liens whose holders were duly notified (46 O.S. 45 and 47). Proceeds pay costs and the senior debt, then junior lienholders in order of priority, then the owner (46 O.S. 48). When a sale runs through the Payne County Sheriff, the sheriff's page lists each case with its appraisal and starting bid, at about two-thirds of appraised value, and requires every bidder to register before the sale. The sheriff gives no warranty of condition or title. A second only works if the first stays current, and if you refinance the first later, the second-lien holder generally has to sign a resubordination agreement. Read lien position explained.

Sources: oklegislature.gov, selling-guide.fanniemae.com, paynecountyok.gov

What does Stillwater require for a short-term rental?
A city license for every short-term rental, under a per-block density cap. Ordinance No. 3604 requires all short-term rentals to be licensed and caps them at 20% per block in residential zones. The city's application form lists a $250 initial fee and a $250 annual renewal, and the license is not transferable, so it does not pass to the next owner. The only exemption from the density cap is for a property with a Payne County homestead exemption, so it does not help an investor-held rental. Stillwater also levies a 7% visitor tax on gross receipts from short stays. If your numbers depend on short-stay income, confirm a license is available on your block before you borrow against it.

Sources: stillwaterok.gov, visitstillwater.org

What property tax should I plan for on a Stillwater rental?
About 1.15% of fair cash value, with no homestead exemption. Payne County assesses at 11.40%, and Stillwater's I-16 tax code totals 101.27 mills, about 1.15% of fair cash value (101.27 mills x 11.40%). An investor parcel gets no homestead exemption, so budget the full bill. Stillwater has no long-term rental license or registration program in its city forms index. Talk to your CPA about your own numbers, and run the combined payment through our second mortgage calculator.

Sources: stillwaterok.gov

Is a second mortgage on a Stillwater rental treated like a consumer home loan in Oklahoma?
Oklahoma draws the line at purpose. The state SAFE Act defines a residential mortgage loan as one primarily for personal, family or household use secured by a dwelling (59 O.S. 2095.2(21)), and the Consumer Credit Code's consumer loan requires debt incurred primarily for a personal, family or household purpose (14A O.S. 3-104). The code's definition of an organization does not name an LLC, so for an LLC borrower the purpose of the loan, not the entity, carries the analysis. We found no Department of Consumer Credit guidance on business-purpose seconds, so this is not a licensing opinion. Talk to your attorney about your own structure, and see second mortgage on investment property.

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 2026-08-28.

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