Business-purpose HELOC for real estate investors
Investment Property HELOC: tap rental equity without refinancing.
Pull cash from the equity in your investment property and keep the first mortgage you already have. Business-purpose lines from $25,000 to $400,000 per investment property, qualified on your bank deposits, with a 100% online application and funding in as few as 5 business days after closing.
Trusted Lender
Connect with the right team to keep your transaction smooth from app to close.
Creative Solutions
Self-employed, foreign national, ITIN, mixed-use — we have a program for you.
Secure & Private
Your data is encrypted and never sold.
Fast to Close
Funding in as few as 5 business days after notary on this program.
Program at a glance
Investment property HELOC terms at a glance
Line amount
$25K - $400K
Per investment property
Max CLTV
Up to 80%
1st lien; 70% in 2nd
Lien position
1st or 2nd
Keep your existing first mortgage
Min FICO
680
Main applicant
Terms
10 - 30 yr
Fully amortizing
Closing costs
$0 out of pocket
Fees financed into the line
Funding
~5 days
After notary, by ACH
Qualify on
Bank deposits
Rental income counts. Tax returns optional
How it works
What is an investment property HELOC?
An investment property HELOC is a line of credit secured by a non-owner-occupied property: a single-family rental, condo, townhome, or 2-4 unit building. Unlike a cash-out refinance, it doesn’t replace your existing mortgage. The line sits behind it in 2nd lien position, or in 1st position if the property is free and clear.
The full approved amount is disbursed at closing. As you pay the balance down, you can redraw during the draw period without a new credit check. Every payment is fully amortizing, so each one reduces principal.
You qualify on your bank deposits, including the rental income that lands in your accounts. Tax returns are optional. Prefer to qualify on the property’s rent alone? See our DSCR 2nd Mortgage.
Who this fits
Who a rental property HELOC is for
If you own rental property and want to put its equity to work without touching your first mortgage, this is the program.
- Funding the down payment on your next rental
- Renovating or repositioning a property
- Paying off hard money or higher-cost business debt
- Building reserves to scale your portfolio
- Self-employed investors who qualify better on deposits than tax returns
- Portfolios held in an LLC
Program details
Investment property HELOC guidelines
Your final line amount depends on verified income, property value, and underwriting.
- Line amount
- $25,000 - $400,000 per investment property
- Lien position
- 1st or 2nd
- Qualifying income
- Bank deposits, including rental income. Tax returns optional
- Max combined LTV
- 80% in 1st lien / 70% in 2nd lien
- Minimum FICO
- 680 (main applicant)
- Max DTI
- 50% after the new line (45% for 2-4 units)
- Terms
- 10, 15, 20, or 30 years, fully amortizing
- Draw period
- 3 yrs (10-yr term) / 4 yrs (15 and 20) / 5 yrs (30)
- Draws
- 100% at closing; redraws $500+, no new credit pull
- Rate
- Fixed and variable (prime + margin) available; which one you can choose depends on your state
- Discounts
- 0.25% rate discount with autopay enrollment
- Origination
- 1.99% - 4.99%, your choice, financed into the line
- Prepayment
- None
- Valuation
- Automated valuation; BPO when needed.
- Seasoning
- 90 days from purchase. 45 days recommended after a refinance.
Line limits
HELOC limits by credit score
Non-owner-occupied properties. Higher scores unlock larger lines in 2nd lien position.
| Lien | FICO | Max line | Max CLTV |
|---|---|---|---|
| 1st lien | 680+ | Up to $400,000 | 80%* |
| 2nd lien | 680+ | $200,000 - $350,000, depending on credit score | 70% |
*$110,000 minimum line when CLTV is above 70%. Max CLTV is also subject to valuation confidence. Applicants outside these tiers may still receive an offer through an alternate underwriting track, evaluated automatically.
Example: how much can you borrow on a rental?
A rental worth $400,000 with a $150,000 first mortgage, a 730 credit score, and the HELOC in 2nd lien position:
- 70% of value
- $280,000
- Minus mortgage
- -$150,000
- Estimated max line
- $130,000
Illustration only. Your actual line depends on the property’s valuation, your verified deposits, and a post-loan DTI of 50% or less.
Looking for more cash?
Need more than $400,000? A DSCR cash-out refinance qualifies on the property’s rent and can go higher. Or see all DSCR loans.
Eligible properties
Eligible properties
- Single-family residences, townhomes, and PUDs
- Condos — no condo questionnaire required
- Duplexes and 3-4 unit properties (BPO required)
Not eligible
- Co-ops, manufactured, mixed-use, commercial, or 5+ units
- Over 20 acres (10 in Texas); leasehold, ground lease, life estate, or land trust
- Reverse mortgage on title, or purchased within 90 days
Ownership & borrower
Ownership and borrower requirements
- Individual, joint, revocable trust, or LLC (25%+ ownership and a Certificate of Good Standing)
- Florida: investment properties must be held in an LLC. Georgia: LLC-vested only, with a personal guarantee
- New York and Texas: LLC ownership not allowed. New York: trusts not allowed
- Valid SSN and a US-issued photo ID. US citizenship not required
- 18+ (19 in Alabama), credit unfrozen with Experian
- All owners on title sign the mortgage. No powers of attorney
Process
How an investment property HELOC closes
Check your options
Tell us about the property, you, and your business. Estimated offers come back after a soft credit pull, with your authorization.
Pick and verify
Choose your line, term, and fee. Verify your ID and link income accounts online. A hard credit pull happens here.
Close online
Sign with a remote notary by video, seven days a week. Wet-ink counties get a mobile notary on your schedule.
Get funded
Most lines fund within 5 business days after notary, by ACH.
How you qualify
Qualify on bank deposits, not tax returns
Most borrowers qualify on bank deposits, including rental income deposited to their accounts. Link accounts online; the strongest source counts. Your line also has to fit a post-loan DTI of 50% or less.
Bank deposits
180+ days of history. Rental deposits count; business accounts at 680+.
Asset accounts
Savings, retirement, brokerage, CDs.
Payroll
W-2 earners connect their payroll provider.
Tax returns
Optional. Use them if they help your numbers.
Compare
HELOC vs. DSCR 2nd mortgage vs. cash-out refinance
| HELOC | DSCR 2nd Mortgage | DSCR Cash-Out | |
|---|---|---|---|
| Qualify on | Bank deposits, incl. rental income | Property's rental income | Property's rental income |
| Lien | 1st or 2nd | 2nd only | 1st (replaces yours) |
| Min FICO | 680 | 660 | 620 |
| Amount | $25K - $400K | $100K+ | Up to 75% LTV |
| Speed | ~5 days after notary | 14-30 days | 14-30 days |
Availability
States where we offer investment property HELOCs
Available in 38 states plus Washington, DC. *Processed through our licensed affiliate.
- Alabama
- Alaska
- Arizona*
- Arkansas
- California*
- Colorado
- Connecticut
- Delaware
- Florida
- Georgia
- Illinois
- Indiana
- Iowa
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan*
- Mississippi
- Missouri
- Montana
- Nebraska
- New Hampshire
- New Jersey*
- New Mexico
- New York
- North Carolina
- Ohio
- Oklahoma
- Pennsylvania
- Rhode Island
- South Carolina
- Tennessee
- Texas
- Utah*
- Washington
- Wisconsin
- Washington, DC
Not available in: Hawaii, Idaho, Kansas, Minnesota, Nevada, North Dakota, Oregon, South Dakota, Vermont, Virginia, West Virginia, and Wyoming.
*In states that require a license (Arizona, California, Michigan, New Jersey, and Utah), your loan is processed through our licensed affiliate, which may contact you directly.
Questions
Investment property HELOC FAQ
Can I get a HELOC on a rental property?
Yes. We offer HELOCs on non-owner-occupied single-family homes, condos, townhomes, PUDs, duplexes, and 3-4 unit properties, in 1st or 2nd lien position. Business-purpose only.
How much can I borrow against an investment property?
Investment property lines range from $25,000 to $400,000, up to 80% combined LTV in 1st lien position and 70% in 2nd. Your maximum depends on credit, verified deposits, and property value.
Do I have to refinance my first mortgage?
No. The HELOC sits behind your existing mortgage, so your current rate and payment don't change.
Can I get a HELOC on a rental property held in an LLC?
Yes. You need to own at least 25% of the LLC and provide a Certificate of Good Standing during the application. In Florida and Georgia, the property must be held in an LLC to qualify (Georgia also requires a personal guarantee). LLC ownership is not allowed in New York or Texas.
What credit score do I need for an investment property HELOC?
A minimum of 680. In 1st lien position, lines go up to $400,000. In 2nd lien position, higher scores unlock larger lines, from $200,000 up to $350,000.
How is my credit checked?
With your authorization, we start with a soft pull so you can see estimated offers. If you choose an offer and continue, a hard credit pull is required before closing.
How fast can I get funded?
Most lines fund within 5 business days after notary. ACH can take 1-3 more business days to post. Funding isn't initiated on weekends.
How is a HELOC different from a DSCR 2nd mortgage?
A HELOC qualifies on your bank deposits, including rental income, can sit in 1st or 2nd lien position, and closes fully online. A DSCR 2nd mortgage is always a 2nd lien and qualifies on the property's rental income alone.
What is the difference between an investment property HELOC and a cash-out refinance?
A HELOC sits behind your existing first mortgage and leaves it in place, so you keep your current rate. A cash-out refinance replaces your first mortgage with a new, larger loan. A HELOC also gives you a revolving line you can draw and repay, while a cash-out refinance is a one-time lump sum.
Can I get a HELOC on a rental without showing tax returns?
Yes. This HELOC qualifies on your bank deposits, including rental income deposited to your accounts. Tax returns are optional. You can add them if they help your numbers.
Does a HELOC on an investment property affect my personal credit?
Checking your options starts with a soft credit pull, with your authorization, which does not affect your score. A hard credit pull is required before closing. Once open, the line reports to your personal credit as a revolving tradeline, not to business credit.
Can I get a HELOC on a property listed for sale?
In limited cases: up to $400,000 and 80% CLTV, with the 4.99% origination fee option only. Not available in states whose fee cap is below 4.99% (IN, LA, ME, NC, RI, TN, WA).
Is there a prepayment penalty?
No. Pay the line down or off at any time.
Ready to tap your equity?
Investment property HELOC — keep your first mortgage.
Check your options in minutes, or talk it through with our team.