What It Is

A Closed-End Second (CES) Loan is a second mortgage. It lets you borrow money from your home’s equity without changing your first mortgage.

You get a lump sum of cash at closing and pay it back over 10, 15, 20, or 30 years with fixed monthly payments.

Ways You Can Use It

  • Home renovations: New kitchen, bath, or other updates.
  • Build an ADU: Add space for family or possible rental.
  • Debt consolidation: Roll high-interest cards into one payment.
  • Education costs: Help pay tuition or school bills.
  • Medical bills: Handle surprise expenses.

This loan gives you funds all at once, which can make planning easier.

Benefits

  • Keep your first mortgage: No change to its terms.
  • Competitive pricing: Based on your full profile.
  • Fixed rate: Same payment each month for easier budgeting.
  • No prepayment penalty: Pay off early if you wish.
  • Pick your term: 10, 15, 20, or 30 years.

Who May Qualify (WA)

  • Washington homeowners (main home or vacation home).
  • Loan size usually from $50,000 to $500,000.
  • Good credit is needed (often 680–720+ depending on size and risk).
  • Total home debt (first + second) usually ≤ ~70–85% of home value.
  • Monthly debts typically ≤ about half of gross income.

Exact approval depends on full underwriting and program rules.

Property Eligibility in Washington

  • Eligible: Single-family homes, townhomes, condos (that meet standard condo rules).
  • Not eligible: Farms, manufactured/mobile homes, log or very unusual homes.
  • Home should be in safe, livable condition and free of major hazards.

Key Things to Know

  • You’ll need homeowners insurance (and flood insurance if required).
  • You usually must close or pay off any existing second lien/HELOC at closing.
  • Your home shouldn’t have been listed for sale within the last 6 months.
  • You can’t use this loan to buy a new main home within 1 year.

Ready to Learn More?

Let’s see if a CES loan fits your goals. Contact: