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Subordinate Financing
January 19, 2023
Any loan taken out after your first purchase loan is referred to as a junior-lien or subordinate mortgage. As a result, subordinate financing is the utilization of two or more mortgages to fund real estate acquisition or the usage of the equity in your property for liquid cash. Subordinate finance debt differs from senior mortgage debt in ways beyond the mere sequence in which the loans are taken out. When it comes to repayment, subordinate funding is similarly positioned behind the debt of the first secured lender.
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