Using home equity

How investors borrow against equity they already own: the honest case for and against, HELOC versus cash-out refinance, lines on investment property, buying a rental with a HELOC, how a fixed-rate full-draw line works, how fast it funds and what the lender requires.

12 LESSONS · 43 MIN · 0/12 DONE

1. 10.1

   1. Home equity as investor capital

   Equity is not free money: a drawn line is a fixed payment from day one. Leverage risk, payment maths and the cases where you should leave the equity alone.

   4 MIN

2. 10.2

   2. HELOC vs cash-out refi

   Blended cost decides it: a HELOC reprices only the new money, a cash-out reprices the whole balance. How to run the comparison on a rental.

   5 MIN · REFERENCE PAGE

3. 10.3

   3. HELOC on a rental

   Yes, with eligible ownership — with a higher credit floor, personal ownership and personal income. What changes against a primary-residence line.

   4 MIN · REFERENCE PAGE

4. 10.4

   4. HELOC to buy a rental

   Yes — as the down payment or a cash purchase — if the plan names the exit. Sequencing a HELOC into a purchase, a BRRRR and a DSCR refinance.

   4 MIN · REFERENCE PAGE

5. 10.5

   5. Fixed-rate HELOC

   A full-draw, fixed-rate line behaves like a home-equity loan with a redraw feature. How the draw, the redraw and the payment actually work.

   4 MIN · REFERENCE PAGE

6. 10.6

   6. How fast a HELOC funds

   As few as five business days, on eligible lines — under conditions. What sets the real timeline, step by step.

   3 MIN · REFERENCE PAGE

7. 10.7

   7. HELOC requirements

   640 in most states and 680 on investment property for this program, plus equity, verified income, eligible property and clean title.

   4 MIN · REFERENCE PAGE

8. 10.8

   8. HELOC fees and costs

   A single origination fee of 0% to 4.99% plus third-party recording and taxes. How the cost of a HELOC is structured and what stays in your pocket.

   3 MIN · REFERENCE PAGE

9. 10.9

   9. HELOC on a second home

   Yes. Using equity in a vacation home to fund your next investment. How occupancy affects your rate, leverage, and eligibility.

   3 MIN · REFERENCE PAGE

10. 10.10

    10. What a HELOC is for an investor

    Yes, home equity lines are available on eligible rental properties owned by individuals or revocable trusts. Investment-property lines require a minimum credit score of 680 and verified personal income; the final line and state eligibility vary.

    3 MIN

11. 10.11

    11. HELOC versus cash-out

    A HELOC in this program adds a second lien while a DSCR cash-out refinance replaces the existing mortgage with a larger rental loan. Ownership and qualification matter: this HELOC accepts individuals and revocable trusts and verifies personal income, while the Silt desk reviews the DSCR alternative on the rental property.

    3 MIN

12. 10.12

    12. Using equity to buy the next rental

    Equity drawn from one property can be used toward another rental’s down payment, subject to the purchase lender’s source-of-funds requirements. A line in this program funds in full at closing, and its payment must be budgeted alongside the new rental loan and reserves.

    3 MIN

Home equity lines are offered through a lending partner; Silt Capital does not originate HELOCs. Terms and eligibility are set by the lender.