Capital stack calculator.
Model both loans.
Both financing pieces are required: a first mortgage one secondary loan — unsecured funding or secured gap funding (2nd lien).
Yes. Jaken Finance Group supports capital stacking. Compare the complete deal, or jump to the two financing requests below. Both loans need compatible terms and lender approval.
For investment-property financing. Each lender reviews the complete structure.
Different sources. A single affordability decision.
Make the whole deal visible.
Model your first mortgage plus one secondary loan. Both financing sources must be approved and coordinated for the stack to work.
My acquisition
TOTAL PROJECT USES
$555,500Purchase + rehab + costs + reserve
- First mortgage
- $400,000
- Unsecured financing
- $75,000
- Your cash contribution
- $80,500
Your KPI scorecard
Targets you controlLook under the hood
Combined DSCR = monthly NOI ÷ both scheduled loan payments. This is an investor coverage measure. A lender’s residential DSCR or global cash-flow method may differ. Total debt / value includes unsecured debt; secured CLTV includes only modeled property liens. Blended rate excludes fees and is not APR.
What happens under pressure?
Base vs. all shocks combinedCash-flow sensitivity
Monthly cash flow as gross rent falls and both starting note rates rise. Expenses and vacancy stay at base assumptions.
Debt through your timeline
Balances are after each month’s scheduled payment and any maturity balloon. A sudden drop at maturity means principal must be funded; it is not forgiven.
Open monthly payment & payoff schedule
Keep the work. Compare the next deal.
Save in this browser, download an editable scenario, or print a report.
Browser saves stay on this device and may be cleared. JSON is your portable backup. Scenario data is not submitted to Jaken Finance Group by this calculator; send the exported file with your request if needed.
Model assumptions: USD; fully advanced at closing; monthly note-rate interest; constant rents and expenses; no construction draws, lease-up, rate resets, taxes on income or gains, prepayment penalties, or refinance fees. Sale mode includes no rental income. Loan fees are counted once in uses; retained reserves are released at exit. Monthly deficits and balloons are separately funded. The sale exit is hypothetical in either strategy. This is an estimate, not a loan offer, commitment, or approval.
A capital stack needs both financing pieces.
Request a first mortgage and one secondary loan. Both requests need separate underwriting, compatible terms and approval before you rely on the stack for closing.
Start your first mortgage
Use our scenario page to choose the asset and transaction you are pursuing: rental, flip, multifamily, commercial, construction or another investment property. Share that you plan to use secondary financing.
Choose my deal & start →Add one secondary financing source
Explore unsecured funding first, or choose secured gap funding (2nd lien). Submit a separate request and reference the same property and first-mortgage scenario.
Coordinate before closing. Both lenders need the full picture: borrowed down-payment funds, all loan payments, lien priority, required cash equity, reserves, and a workable repayment plan. Jaken Finance Group supports the strategy; individual program approval still applies.
What is a capital stack?
A capital stack is the collection of funding sources behind one investment. Here, it means a first mortgage, a separate secondary loan, and your own cash. The second loan can help fund a down payment or project gap when the first lender permits the structure. Borrowing the gap changes how the acquisition is funded; you still repay every loan.
What stacking can do for you
- Preserve liquidity. Reduce the amount of personal or business cash committed to one acquisition, while budgeting for the additional payment.
- Match capital to the need. Use the first mortgage for the property and evaluate a separate source for the remaining permitted funding requirement.
- Keep ownership intact. Debt financing can avoid bringing in an equity partner, subject to the obligations in the loan documents.
- Make alternatives comparable. Test a larger cash contribution against a second loan using the same costs, income and exit assumptions.
What deserves your attention
- Higher combined payments. A property that covers its first mortgage may have thin or negative cash flow after the secondary installment.
- More leverage and fees. Additional debt reduces the cushion against value declines and adds its own origination and closing costs.
- Different maturity dates. A gap loan can come due before the first mortgage or your planned sale. A balloon requires cash or an approved replacement loan.
- More coordination. Loan covenants, lien consent, source-of-funds rules, guarantees and required equity can limit the structure. Unsecured does not mean obligation-free.
Unsecured funding or a second lien?
| Decision | Unsecured financing | 2nd lien / gap financing |
|---|---|---|
| Property lien | Not structured as a second mortgage on the subject property; review actual guarantees and obligations. | Secured by the property behind the first mortgage; review priority and senior-lender consent. |
| Affordability | Include its full installment in your cash-flow plan and any applicable global debt review. | Include its payment, fees and balloon alongside the first mortgage. |
| Best next step | Read the unsecured program, then request unsecured financing. | Read the gap-funding overview, then request a second lien. |
How to use the advanced capital stack calculator
- Build the budget. Enter the price, improvements, other closing costs, reserve and current property value. Loan fees are added separately so they are counted once.
- Enter both financing quotes. Model interest-only or principal-and-interest payments, distinct amortization periods, maturity dates and fees. Unsecured debt appears in total leverage without being shown as a property lien.
- Set your own guardrails. Choose minimum coverage, cash flow, annual cash-on-cash and liquidity, plus a maximum total debt-to-value ratio. These are your decision thresholds.
- Test the downside. Reduce rent and exit value, raise expenses and compare hypothetical higher starting rates. Review every balloon before relying on an exit.
- Save and take the next step. Compare alternatives, export the report, submit your first-mortgage scenario, then request your preferred secondary financing.
Questions before you combine loans
What is capital stacking in real estate?
Capital stacking combines multiple funding sources for one property investment. On this page, the stack consists of a first mortgage, secondary financing through an unsecured loan or second lien, and any cash you contribute. Each loan has its own payment, fees and repayment obligation.
Does Jaken Finance Group support capital stacking?
Yes. Jaken Finance Group supports capital stacking for investment-property acquisitions when the first mortgage and secondary financing fit together. Submit the first mortgage through /scenario/, then choose an unsecured financing request or a second-lien gap request. Both lenders must review the full financing structure and permitted source of funds.
Do I need both a first mortgage and secondary financing?
Yes. The two-loan capital stack shown here requires both a first mortgage and one separate secondary financing source: unsecured funding or secured gap funding in a second-lien position. Submit both requests, disclose the complete structure to both lenders, and confirm that both loans are approved, compatible and available for closing. Each request has its own underwriting and terms.
Can unsecured financing be used for a down payment?
Unsecured financing may be considered for business-purpose down-payment funding when the first-mortgage program permits borrowed funds. It remains debt and its payment must be budgeted. Disclose the source to both lenders and obtain approval before relying on it for closing. Some programs require your own cash equity or restrict borrowed funds.
How is unsecured financing different from a second-lien gap loan?
The unsecured route is not structured as a second mortgage on the subject property, although guarantees and other obligations may apply under the actual loan documents. A second-lien gap loan is secured behind the first mortgage and requires compatible lien and loan terms. Both add debt service; the calculator counts both in total leverage and cash flow.
Does stacking guarantee 100% financing or no money down?
No. A stack can reduce your cash contribution, but loan limits, fees, required equity, reserves and lender restrictions can still leave a cash requirement. The calculator shows cash required, liquidity and any funding shortfall. Its outputs are planning estimates, not approval or a commitment to fund.
How does the capital stack calculator measure DSCR and cash-on-cash return?
Combined DSCR is monthly net operating income divided by both scheduled loan payments. Annual cash-on-cash return is twelve times month-one cash flow divided by your initial cash contribution, including the reserve. This is an investor model; a lender may use a different coverage calculation. Rental return metrics are not applicable in sale mode.
Can I save or export my capital stack?
Yes. Save named scenarios in this browser, pin a comparison, export a JSON scenario that can be imported later, download a CSV with assumptions, KPIs, stress results and monthly debt schedules, or print a report and choose Save as PDF. Browser saves stay on the device and are not submitted to Jaken Finance Group.