Here’s what the current program guide says. Every loan still depends on the full deal, so we’ll confirm the details together.
Why investors use it
A rental HELOC can give you capital for the next acquisition or renovation while leaving your first mortgage alone.
- Second-position, revolving line of credit
- Qualification based on rental cash flow instead of personal income or DTI
- Can be used for new acquisitions or renovations
- The published page describes interest-only payments, no balloon, and no prepayment penalty
Current program guide
The existing page lists these general parameters:
- Line amount from $100,000 to $500,000
- Minimum DSCR of 1.00
- 5-, 10-, and 30-year options
- Minimum draw of $1,000
- A 10–14 day closing timeline is listed
- Published leverage: up to 70% for purchase or rate-and-term, and 65% for cash-out
The published combined loan-to-value can reach 75% after 12 months of seasoning. The actual limit depends on your property and program.
Property and borrower fit
This is designed for rent-producing or rentable, non-owner-occupied property.
- Single-family homes, warrantable condos, and 2–4 unit properties
- Property condition of C4 or better
- LLC or corporation closing with a personal guarantee
- Minimum 650 credit score and no mortgage late payments in the last 12 months
A point worth comparing
A HELOC adds a second payment. Compare it with a cash-out refinance in light of your first mortgage, total borrowing cost, and how much capital you actually need.