Utilizing Primary Residence Equity for Financing

[Kevin DeBoer]

I've been trying to understand what opportunities there would be to find a lender that would be willing to take a second position on my primary residence in order to finance an investment opportunity. I've been working my way through different institutions and this seems to be a strategy that isn't generally accepted if the loan is in excess of my DTI.

If my home is valued at $2m and my primary mortgage is at $500k then I would think a lender would be interested in anything up to 70-80% LTV. I'm hoping to pull out $800k-$1m to immediately reinvest and allow for this to even function as a cross-collateralization situation, but even though the risk seems much lower than in other types of lending, I'm not seeing a clear path forward.

Am I missing some type of risk associated with this type of investment? Should I be looking at this differently?

Thank you