Reviewed August 9, 2026 · Educational planning guide
How to Get a Second Mortgage: HELOC vs Home Equity Loan
Quick answer: A second mortgage is debt secured by a home while another mortgage usually remains in first position. Common forms are a fixed home equity loan and a revolving HELOC. Approval depends on equity, combined loan-to-value, income, debts, credit and lender rules.
Calculate available equity
Estimate property value, subtract all mortgage balances, then apply the lender’s maximum combined loan-to-value. An appraisal or automated valuation may determine the value used for approval.
HELOC versus home equity loan
A HELOC usually permits draws up to a limit and often has a variable rate. A home equity loan usually provides a lump sum with a fixed payment. Compare draw rules, rate structure, fees and repayment timing.
Application and closing
Expect income, asset, debt and property documentation. The lender may obtain a valuation, review title and disclose loan costs. Federal rescission rights can apply to certain principal-residence transactions.
Risks and alternatives
Because the home secures the debt, default can put the property at risk. Compare an unsecured loan, cash-out refinance, savings or a smaller project before converting other spending into home-secured debt.
Frequently asked questions
Can I get a second mortgage with bad credit?
Standards vary, but weaker credit can reduce approval odds or raise cost. Equity alone does not guarantee approval.
How much can I borrow?
The result depends on lender CLTV limits, supported property value, existing balances, repayment ability and program rules.
Can I refinance a first mortgage while keeping a HELOC?
Possibly, but the HELOC lender may need to subordinate its lien. Approval is not automatic and timing matters.
Use the related tools
This guide provides general education, not personalized lending, legal, tax or investment advice. Confirm current terms with the lender, servicer, closing professional or appropriate adviser.