Investor home equity

HELOC on Investment Property

Borrow against the equity in a rental without refinancing your low-rate first mortgage. Qualify with full doc, DSCR, bank statements, a P&L or 1099s, and we match you with the lender whose rules fit.

Start my HELOC request Apply online (digital HELOC)

6 waysto qualify

$25K–$3Mline sizes

70–80%max CLTV on rentals

1st or 2ndlien position

The short answer

Can you get a HELOC on an investment property?

Yes. Several lenders offer HELOCs on 1–4 unit rentals, usually with a lower maximum CLTV and a higher minimum credit score than on a primary home. You can qualify with W-2 income, the property’s rent (DSCR), 12–24 months of bank statements, or a P&L or 1099s.

Bankrate notes that equity loans on investment properties may be harder to obtain, and that is why shopping matters. As a broker we send one file to the wholesale lenders that write HELOCs on rentals, second homes and, with some lenders, properties held in an LLC.

“Many of the investors I work with have owned their rentals for years and bought or refinanced when rates were much lower. Now they want to tap that equity to buy their next property, or to buy and rehab one, then do a cash-out refinance on the new property to pay the line back off. Most of them can’t qualify for a traditional HELOC because their tax returns don’t show what their properties actually earn. A DSCR second mortgage or DSCR HELOC gets them to that equity without touching the low-rate first mortgage.”

— Trevor Gravink, Mortgage Consultant

Requirements

What are the requirements for a HELOC on a rental property?

Expect a minimum credit score of 660–740 depending on how you qualify, a maximum combined loan-to-value (CLTV) of 70–80%, and a way to document income. Some lenders also require you to have owned the rental for 12 months.

Your CLTV is your first mortgage balance plus the new line, divided by the property’s value. A rental worth $500,000 with a $250,000 first mortgage, at a 75% cap, could support a line of up to $125,000 ($375,000 − $250,000).

Bankrate’s survey puts typical investment-property reserves at 6–15 months of payments, though several of our programs ask for less or none.

Compare

Which way of qualifying fits you?

Pick the option that shows your income best. W-2 earners usually do best with full doc, investors with heavy write-offs look at DSCR, and self-employed borrowers can use bank statements, a P&L or 1099s instead of tax returns.

How you qualify	Best for	Min. credit (rental)	Max CLTV (rental)	Line size	LLC vesting
Full doc	W-2 or tax-return income that tells the whole story	680–700	70–80%	$25K – $1M	Some lenders
DSCR	Investors whose rent covers the payment	700 (720 second lien)	Up to 75%	$50K – $3M	Yes
Bank statement	Self-employed with heavy write-offs	700	75% (program max to 85%)	$50K – $1M	Some lenders
P&L	Business owners with a strong profit statement	740	Up to 80% (program max)	Up to $750K	Ask us
1099	Independent contractors	720	75–80% (program max)	Up to $750K	Ask us
Digital / no appraisal	Simple files that want speed	680 (720 for larger lines)	70–75%	Up to $250K	No

Ranges come from the guidelines of the wholesale lenders we have access to and broker loans to (October 2026). “Program max” is the highest CLTV across occupancy types; rental limits can be lower. Approval depends on underwriting.

Full doc HELOC

Qualify with W-2s, pay stubs or tax returns. Often the best terms when your returns show your real income.

Full doc HELOC options →

DSCR HELOC

Qualify on the property’s rent compared with its payment. No personal income, LLC vesting allowed.

DSCR HELOC details →

Bank statement HELOC

12 or 24 months of personal or business deposits in place of tax returns.

Bank statement HELOC →

P&L HELOC

Qualify on a 12- or 24-month profit-and-loss statement. Built for established business owners.

P&L HELOC →

1099 HELOC

Qualify on your 1099 income less an expense factor. Built for contractors and gig earners.

1099 HELOC →

No-appraisal digital HELOC

Apply online, verify income by linking accounts, and value the property with an AVM.

No-appraisal HELOC →

Your first mortgage

Can I keep my first mortgage and add a HELOC?

Yes. A second-lien HELOC sits behind your existing first mortgage, so the rate on that loan doesn’t change. If the property is free and clear, a first-lien HELOC can be the only loan on it.

That’s the main reason investors choose a HELOC over a DSCR cash-out refinance when their first mortgage has a low rate. We compare all three in HELOC vs. HELOAN vs. cash-out refinance.

Entities

Can you get a HELOC on a property held in an LLC?

Yes, with some lenders. DSCR HELOCs and one of our full doc and bank statement lenders allow LLC vesting on investment properties; the digital HELOCs need the property in your personal name or a revocable trust.

If your rentals are in an LLC, choose “LLC” on the form so we only send your file to lenders that allow it. More in DSCR loans for LLCs.

Speed

How fast is a digital HELOC approval on a rental?

Our digital HELOC takes the application online, verifies income by linking your accounts, and values most properties with an automated valuation model (AVM) instead of an appraisal. Investment properties can fund sooner than a primary home because the federal 3-day right of rescission applies only to a consumer’s principal dwelling.

Larger lines, 2–4 unit properties and files the AVM can’t value may need an appraisal. See the no-appraisal HELOC page for limits. The digital application is for W-2, 1040 or linked-bank income only; bank statement, P&L, 1099 and DSCR files use our request form below.

Apply online for a digital HELOC

How it works

How does a HELOC work after it’s open?

A HELOC is a revolving line: you draw what you need, repay it, and can draw again during the draw period, then repay the balance during the repayment period. Most HELOCs have a variable rate, so the payment can change.

Some lenders require you to draw most or all of the line at closing. Ask about this if you only want the line as a reserve.

Availability

Which states can you get these HELOCs in?

Full doc, bank statement, P&L, 1099 and digital HELOCs are available in Arizona, California, Florida, Oregon, Tennessee, Texas and Washington. DSCR HELOCs are business-purpose loans and may be available in more states.

Texas has its own home equity rules and some lenders limit occupancy types or lien positions there. If your rental is in Texas, we’ll confirm which lenders can take it before you apply.

FAQ

Investment Property HELOC FAQs

Can you get a HELOC on an investment property?

Yes. Several wholesale lenders offer HELOCs on 1–4 unit rentals, usually with a lower maximum CLTV and a higher minimum credit score than on a primary home. We broker to the lenders that write them, so one application can be matched to the lender whose rules fit your file.

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

Across our lenders, minimums on rentals run from about 660 to 740 depending on how you qualify: roughly 680–700 for full doc, 700–720 for DSCR, 700 for bank statements, 720 for 1099 and 740 for P&L.

How much can I borrow on a rental property HELOC?

Most lenders cap investment properties at 70–80% combined loan-to-value. A $500,000 rental with a $250,000 first mortgage at a 75% cap could support a line of up to $125,000.

Can I keep my first mortgage?

Yes. A second-lien HELOC sits behind your existing mortgage, so its rate does not change. If the property is free and clear, a first-lien HELOC can be the only loan on it.

Can the property be in an LLC?

With some lenders. DSCR HELOCs and one of our full doc/bank statement lenders allow LLC vesting; the digital HELOCs require the property in your personal name or a revocable trust.

Is there a waiting period after I buy a rental?

It depends on the lender. Our digital HELOC requires 12 months of ownership on non-owner-occupied properties; other programs may value recently purchased properties at the lower of purchase price or appraisal.

Which states do you offer investment property HELOCs in?

Keep exploring

More home equity options

Get started

Request your investment property HELOC options

Tell us about the property and how you want to qualify. We’ll match you to the lenders whose rules fit, then you can book a call on the next screen.

W-2 or 1040 income? Apply online instead

Prefer to talk first? Call or text (619) 404-6637.

Programs, guidelines and terms described here come from the wholesale lenders we broker loans to and change often. This is not a commitment to lend; all loans are subject to credit approval, underwriting, property eligibility and state availability. Rates and payment terms are not quoted on this page. Trevor Gravink, NMLS #1707407 | Broker Buddy LLC, powered by Adaptive Mortgage Solutions, NMLS #2022974. Equal Housing Opportunity.