State Guide for Second Mortgages in All 50 States

Second mortgage regulations vary significantly by state. Below are key state-specific frameworks homeowners should understand before applying:

Second Mortgage Rules Vary by State

• Texas: Article XVI Section 50(a)(6) — 80% CLTV hard cap, 2% lender fee cap, 12-day cooling-off period, and one home equity loan per homestead (permanent classification).
• California: Non-recourse purchase-money loans protected under CCP § 580b; California Department of Financial Protection and Innovation (DFPI) regulates state-licensed lenders.
• New York: CEMA (Consolidation, Extension, and Modification Agreement) can significantly reduce mortgage recording tax on refinances; NY Department of Financial Services licensing required.
• Florida: Condo 2nd mortgages subject to post-Surfside SB 4-D structural integrity reserve studies and milestone inspection requirements.
• Washington: Mortgage Broker Practices Act (RCW 19.146) — enhanced disclosure and licensing standards; Washington DFI oversight.
• Ohio: Ohio Mortgage Loan Act — 21% APR usury cap and mandatory closing cost disclosures.
• New Jersey: Prepayment penalties prohibited on primary residence 2nd mortgages under N.J.S.A. 46:10B-2.
• Arizona/Nevada: Non-recourse purchase-money 2nd mortgages on primary residences by state law.
• All States: Federal 3-day right of rescission (15 U.S.C. § 1635) applies to owner-occupied 2nd mortgages.

Verify state-licensed lenders at nmlsconsumeraccess.org before applying.

Check out State Guide for Second Mortgages that provide interest rate incentive and regional pricing for home equity loans & HELOC credit lines. Nationwide lenders offer second mortgage programs across the country to qualified homeowners. We continue to provide a multitude of home equity loan options that maintain competitive interest rates that are state specific.

Ask your loan officer about State specific loan incentives that may enable you to save even more money. Because of property values, and certain state restrictions, interest rates may vary slightly from state to state. Borrowers are taking out second mortgage loans for the following reasons; Cash Out, Debt Consolidation, Financing Home Improvements, Emergency Cash Relief

The time for a fixed rate second mortgage loans has never been better because the interest rates are low and with interest only options allow you to have the ability to make a minimal payment for the first five years of the loan. With the Federal Reserve dropping the mortgage rates several times recently, homeowners have the ability to reduce their monthly payments and improve their finances with a second mortgage or home equity line of credit that meets their needs.

• Reviewed by John Tappan NMLS# 394171 | Updated August 2026
• Disclosure: BD Nationwide is not a lender; we connect consumers and licensed mortgage professionals.