Can you get a HELOC on an investment property?

Yes. This program is built specifically for rental and investment property owners: a standalone second lien or HELOC that sits behind your existing first mortgage. Qualifying uses DSCR rental cash flow or 12 months of bank statements instead of tax returns.

How much can I borrow against a rental property?

$50,000 – $750,000 line (rental-income/DSCR lines up to $500,000). Up to 75% CLTV on bank-statement qualifying (720+ FICO) and 70% at 700–719 FICO through $500,000; rental-income (DSCR) lines cap at 70% CLTV at 720+ FICO through $500,000; lines from $500,001 to $750,000 are bank-statement only at 720+ FICO and 65% CLTV. The first draw at closing must be at least 80% of the line and at least $50,000. Later draws are $5,000 minimum.

Do I have to refinance my first mortgage?

No. This is a standalone second lien, so your low-rate first mortgage is untouched — no refinance, no re-setting your rate or term.

How does the 5-year interest-only draw work?

The line carries a 5-year interest-only draw period, then amortizes over 25 years for a 30-year total maturity. During the draw you pay interest only on the balance drawn.

What credit score do I need for an investment property HELOC?

700 minimum FICO on the 12-month bank statement track and 720 on the DSCR rental track. Scores below 700 are not eligible for this investor program.

Is an appraisal required?

Not always. Cash-out at or below $400,000 can be valued with an automated desktop AVM, and there is no ownership seasoning requirement on investor collateral.

Can the loan be vested in my LLC?

Yes. LLC vesting is permitted, including rental properties already held in an entity.

HELOC on Investment Property — Up to $750k

The lien stack

Unlock equity. Keep your rate.

Available equity

Value remaining above the liens

Property value

New funding

Standalone 2nd lien

Accesses equity

Existing debt

Your 1st mortgage

Untouched

Conceptual illustration only. Final lien size depends on value, balances, credit and qualifying track.

Keep the first. Add flexibility.

A line of credit behind the mortgage you already own.

Draw against rental-property equity for acquisitions, renovations or reserves. Pay interest only during the 5-year draw, then amortize over 25 years.

Up to $750k

Line size

5 years

Interest-only draw

Two tracks

DSCR or bank statements

$0 fees

Origination and broker

Single-family rental
Put equity back to work

Small multifamily
Scale without refinancing

Pricing

How investor HELOC rates work

Prime is the index, not your rate. Your rate = prime + an investor margin.

Index: prime

Published by banks. It moves when the Fed moves.

Margin: fixed

Set at desk review from FICO, CLTV, qualifying track and line size.

Variable rate

When prime moves, your rate moves by the same amount. The margin never changes.

Interest on draws only

You pay interest only on what you've drawn. Caps and floors are confirmed in your proposal.

Example only: prime 7.25% + example margin 2.00% = 9.25% variable. Not a quote — your margin appears in your proposal.

Full HELOC rates & terms: prepayment, eligible states, STRs →

Rate-Saver

HELOC vs. cash-out refinance — run the blended rate

See what refinancing your whole first mortgage really costs compared to keeping it and drawing only what you need from a HELOC.

Property value

Current 1st mortgage balance

Current 1st mortgage rate

Enter the rate on your existing first mortgage

HELOC line size

Up to $750,000 (rental-income/DSCR lines up to $500,000)

Amount drawn today

First draw must be at least 80% of the line and $50,000 ($100,000 here). Later draws $5,000 minimum; interest only on what is drawn.

Illustrative HELOC rate (prime + margin)

Replace with a desk-reviewed rate when available

Illustrative cash-out refinance rate

Replace with a comparable investor refinance quote

Combined loan-to-value (full line)73.1%

75% applies only to bank-statement files with 720+ FICO; 70% applies to DSCR and 700–719 bank-statement files. Qualification requires desk review.

Traditional cash-out refinance

Replace the existing first mortgage

Consolidated balance: $450,000 at 7.375% P&I
New monthly debt service: $3,108/mo
Added cost for the cash: +$1,229/mo

Forfeits your locked first-lien rate, resets amortization to day one, and often carries points and fees on the entire $450,000 balance.

Lower payment in this example

Preserved 1st + HELOC

The arbitrage

Liens: $350,000 at 5.000% + $100,000 drawn at 9.875% IO
Total combined monthly payment: $2,702/mo
Effective blended rate: 6.08%

$25,000 of your line stays undrawn — it costs you $0 until you use it.

Monthly cash flow saved: +$406/mo ($4,875/year)

Refinancing changes monthly debt service by $1,229/mo for the new $100,000 (14.7% annualized payment change).

Blended-rate discount vs. refinancing: 1.29 pts

$0 origination & $0 broker fees — no upfront points on existing or new debt.

5-year interest-only draw — 30-year maturity (25-year amortization).

Desktop AVM may be available (subject to review)

Direct LLC vesting — single- or multi-member LLCs.

Illustrative rates — not a quote, approval or savings claim. Payments are principal & interest on 30-year amortization for first liens and interest-only on the drawn HELOC balance; taxes and insurance excluded. Pricing is set at lock and subject to full underwriting.

Estimate your investment property HELOC

Enter your rental property value, first-lien balance and credit tier. The calculator applies the live investor guideline matrix and shows your interest-only draw payment.

Property type

Investment property (non-owner-occupied)

Credit score (FICO tier)

Estimated property value$600,000

Existing 1st mortgage balance$250,000

Current 1st lien CLTV: 42%

Total 12-month personal or business deposits$480,000

Expense factor50%

50% is standard for business accounts. Use 0% for personal accounts.

Other monthly personal debt obligations$1,200

Auto loans, credit cards, student loans, and your existing 1st mortgage payment.

Estimated standalone 2nd lien

$200,000

Max permissible CLTV

75%

Interest-only payment

$1,646/mo

Qualifying income

$20,000/mo

Debt-to-income

14%

Eligible for Desktop AVM (skip full appraisal)

Payment shown at a 9.875% placeholder rate. 5-Year Interest-Only Draw / 30-Year Maturity / 25-Year Amortization. 75% CLTV — Investor bank statement, 720+ FICO, loan ≤ $500k.

Automated valuation (AVM) may be available, subject to property and desk review.

Loan sizes $50,000 – $1,000,000 · $0 origination & broker fees

Estimates only, based on the published guideline matrix and a placeholder interest-only rate. Final terms depend on FICO, CLTV, valuation, and index pricing. Not a commitment to lend. Proprietary qualification model — output is for your own scenario only and may not be reproduced or redistributed.

Investment property HELOC questions

Ready to size your rental equity line?

New to this structure? Start with the Investor Academy or see the full program overview.