Non-QM · Second lien
Non-QM second lien financing up to $250,000
The existing first mortgage stays in place. CR Equity AI places a new loan behind it. A refinance would pay that mortgage off. This program does not.
Direct lender. We lend our own capital. Eligible files only. Subject to underwriting.
- Up to $250K
- Maximum loan amount
- First stays
- Existing mortgage remains
- 2 AVMs + PCR
- Valuation on eligible loans
- Title search
- Instead of a full title policy
- Up to $2K
- Potential savings, not guaranteed
Definition
What is a Non-QM second lien?
A second lien is an additional loan secured by the same property while the existing first mortgage remains in place.
Non-QM means the loan is outside the qualified-mortgage rules that govern many consumer first mortgages. On this program, CR Equity AI will consider a Non-QM second lien of $250,000 or less when a broker or correspondent submits the file and ownership stays as it is.
If the goal is to replace the current mortgage, that is a refinance, not a second lien.
Comparison
Second lien vs. refinance
A refinance replaces the existing mortgage. A second lien leaves that mortgage in place and puts the new loan behind it. CR Equity AI’s Non-QM second lien is the second path, capped at $250,000 on an eligible file.
Property
Paid off
Existing mortgage
Replaced. It does not stay on the property.
1st
New mortgage
The refinance becomes the loan on the property.
Property
1st
Existing first mortgage
Stays in place. It is not paid off.
2nd
CR Equity AI second lien
Subordinate. Eligible amount up to $250,000.
| Question | Refinance | Second lien |
|---|---|---|
| What happens to the first mortgage? | It is paid off and replaced. | It stays in place. |
| Where does the new loan sit? | It becomes the mortgage on the property. | It is subordinate to the existing first mortgage. |
| When it fits | You want to replace the current loan. See DSCR refinance. | You want a new loan without paying off the first mortgage. Eligible amount up to $250,000. |
Eligibility
Who qualifies for this second-lien program?
CR Equity AI uses four requirements. All four have to be true. Final approval is still subject to underwriting.
01
Non-QM second lien
The loan is a second-position Non-QM file.
02
$250,000 or less
Loans above that amount are outside this program.
03
Vesting unchanged
Property ownership stays as it is. A change uses the full title process.
04
Broker or correspondent
The file is submitted through CR Equity AI’s broker or correspondent channel.
If ownership or vesting has to change, the loan follows the standard full title process. It does not stay on the title-search path.
CR Equity AI loans are business-purpose. This is not a consumer second mortgage on an owner-occupied primary residence. Other structures — bridge, F.L.E.X. 50™, and refinance — live on the programs page.
Valuation
Does a second lien require an appraisal?
Eligible loans do not use a traditional appraisal. CR Equity AI values them with two AVMs, each with at least 90% confidence, plus a Property Condition Report (PCR).
AVM 1
90%+
Minimum confidence
AVM 2
90%+
Minimum confidence
PCR
Property Condition Report
Required with the two AVMs. This is a valuation, not a waiver of one.
That is not “no valuation.” Two AVMs and a PCR are the valuation. CR Equity AI charges a $999 fee for AIVAA™ — AI Valuation & Analytics Assessment. AIVAA is a property evaluation. It is not an underwriting or loan-decision engine. How AIVAA values property explains the product. Partners who want AIVAA on their own book start from the AIVAA page.
Title
Does a second lien require a full title policy?
No full title policy when the loan is eligible and ownership stays the same. A title search is still required. “No title” is the wrong description.
Eligible file
Title search
Vesting stays the same. No full title policy. A title search is still required.
If ownership changes
Full title process
The file leaves the title-search path and follows the standard full title process.
Title search process
Four steps to the closing table
Submit the loan
Submit an eligible Non-QM second lien through the CR Equity AI portal.
Title search applied
The underwriter applies a title search instead of a full title policy.
We order it
CR Equity AI orders the title search, so there's nothing for you to chase.
Proceed to closing
The loan moves straight to closing with our notary or attorney network.
Closing
Attorney states and non-attorney states
Non-attorney states
CR Equity AI arranges a notary. Settlement is at cost. Borrowers are generally responsible for notary, courier, eRecording, and recording fees.
Attorney states
CR Equity AI engages the national closing partner to coordinate signing. The settlement bundle for each state is in the fee schedule.
- California
- Connecticut
- Delaware
- Georgia
- Massachusetts
- New York
- South Carolina
- Texas
- West Virginia
Fees
What fees are associated with the program?
Three program fees apply across states. Settlement is then either a published bundle or at cost. Potential borrower savings of up to $2,000 are not guaranteed and depend on the file.
| Fee | Amount | What it covers |
|---|---|---|
| AIVAA fee | Amount $999 | Charged on this program. AIVAA is a property evaluation, not a loan decision. |
| Application fee | Amount Not yet set | Not published yet. Do not assume another program’s application fee. |
| Dual signing fee | Amount $125 | Separate from the state settlement amount. |
State settlement
Bar length is the published bundle compared with the $550 Delaware figure. Non-attorney states are at cost, so they are not drawn as a dollar bar.
- California$350
- Connecticut$350
- Delaware$550
- Georgia$450
- Massachusetts$450
- New York$350
- South Carolina$450
- Texas$400
- West Virginia$425
- Non-attorney statesAt cost
- Attorney-state figures are settlement bundles. The $125 dual signing fee is not included in those amounts.
- In non-attorney states, borrowers are generally responsible for notary, courier, eRecording, and recording fees. Those pass-through costs are separate from the settlement line.
- Texas settlement is $400. The Texas office fee is not included in that figure and is quoted on the file.
- Other CR Equity AI programs publish a different fee schedule on the pricing policy. Do not apply that schedule to this second lien.
Questions
Non-QM second lien FAQ
Replacing the first mortgage is a different product. DSCR refinance pays the existing loan off. This page is only the second-lien path.
A Non-QM second lien is an additional loan secured by a property that already has a first mortgage. The first mortgage stays in place, and the new loan sits behind it. CR Equity AI’s program covers eligible Non-QM second liens of $250,000 or less, submitted through a broker or correspondent.
A refinance pays off and replaces the existing mortgage. A second lien does not. The existing first mortgage remains, and the new CR Equity AI loan is subordinate to it. Use a second lien when the first mortgage should stay. Use a refinance when that mortgage should be replaced.
A broker or correspondent submits the file. Eligible loans are valued with two AVMs at 90% confidence or higher plus a Property Condition Report, then cleared with a title search instead of a full title policy when vesting is unchanged. Closing is a notary in non-attorney states, or CR Equity AI’s national closing partner in attorney states.
Four conditions: the loan is a Non-QM second lien, the amount is $250,000 or less, property ownership and vesting stay the same, and the file is submitted through CR Equity AI’s broker or correspondent channel. Approval is subject to underwriting. CR Equity AI loans are business-purpose.
Eligible loans do not use a traditional appraisal. CR Equity AI values them with two AVMs, each at 90% confidence or higher, plus a Property Condition Report. That is a valuation. It is not a waiver of valuation.
No full title policy on an eligible loan when ownership and vesting stay the same. CR Equity AI still requires a title search. If ownership must change, the loan follows the standard full title process.
No. Property ownership and vesting must remain unchanged for the title-search path. If a change of ownership is required, the loan follows the standard full title process.
Up to $250,000, subject to program and underwriting requirements. Loans above $250,000 are outside this program.
The AIVAA fee is $999. The dual signing fee is $125. The application fee is not yet set. Attorney-state settlement bundles run from $350 to $550 depending on the state. Non-attorney states are at cost, and borrowers are generally responsible for notary, courier, eRecording, and recording fees. Potential savings of up to $2,000 are not guaranteed.
California, Connecticut, Delaware, Georgia, Massachusetts, New York, South Carolina, Texas, and West Virginia. In those states CR Equity AI engages its national closing partner to coordinate signing. In other states CR Equity AI arranges a notary.
Yes, when the existing first mortgage should stay. A second lien adds a new loan behind that mortgage instead of paying it off. CR Equity AI lending is business-purpose. This is not a consumer home-equity loan on an owner-occupied primary residence.
No. CR Equity AI does not publish a rate, a minimum credit score, or an LTV for this Non-QM second lien. The published limits are the $250,000 maximum, the valuation method, the title-search rule, and the fee schedule. Final terms are subject to underwriting.
Have a second lien that fits?
Submit the file through a broker or correspondent. CR Equity AI reviews it against this program: $250,000 or less, vesting unchanged, title search, and two AVMs plus a property condition report.