Third Mortgage
Hard Money Lines of Credit and Private Money Loans

A third mortgage is a loan that is subordinated to existing first and second mortgage liens. It is very rare to find home equity lenders that offer 3rd mortgages these days. They were much more common into the seventies and eighties before the savings and loan scandals changed to course of home mortgage loans. Third mortgages are liens that are prioritized lower than first or second mortgage loans. It is possible to find properties still that have two, three mortgages or land contracts at the same time. Third mortgage programs are very difficult to find these days; however, there are a few private money and hard money lenders that continue to offer this type of alternative financing.

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Third Mortgage Benefits

Quick Cash Out with a 3rd loan

Hard Money Lines of Credit

Home Rehab Funding

Consolidate Bills without Refinancing

Interest Only Payment Options

Third Mortgage Credit Lines

Lien position is relevant because in a foreclosure proceeding, the legal entities would determine which mortgage lenders are paid first based on lien position on title. Discuss your goals with a loan officer that works for a lender like BD Nationwide that offers hard money equity loans.

Consider a 3rd mortgage HELOC if you have a low interest rate on your first and second mortgage. There are a handful of private equity companies advertising third mortgage loan programs for the purposes of cash out, real estate investments, and much more. In 2020, several equity lenders announced new third mortgage products for construction, rehabilitation and even house flipping.

Can I qualify for a 3rd mortgage if my combined loan to value is at 100%?

It is very difficult to find a lender who will allow lending for third mortgages beyond 90%. Programs come and go, so occasionally you will find a third mortgage up to 100%, but there are typically loan amount restrictions that hinder the appeal. The other important factor is credit. Credit scores will need to exceed 700 for most 3rd mortgage programs unless you have more equity. There are several private money lenders offering low interest third mortgage programs for cash back, home remodeling, debt consolidation and more. In 2020, we are hearing that 70-75% CLTV is most common for third mortgage programs.

3rd Mortgage Lines of Credit- Some home equity lines are considered 3rd mortgages. Like the fixed rate third mortgages, it is very difficult to locate a mortgage broker or bank who will offer you a secured line of credit in 3rd position. It is possible, so if you have equity in your home, and you want to leave your existing first and second mortgages out of the refinance, then a third mortgage credit line may be an option for you to get cash. If you have been turned down for a third mortgage program due to low fico scores, ask about the home equity loan for bad credit.


BD Nationwide Mortgage, 515 Encinitas Blvd. Ste 100, Encinitas, California 92024
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