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.
THE NUMBERS
| Line amount | $15,000 – $750,000 (program’s range; your maximum depends on value, liens, credit and verified income) |
|---|---|
| Valuation | Automated valuation for eligible lines under $400,000 · appraisal above $400,000; confirm the exact threshold with the lender |
| Rate type | Fixed; variable where this program offers it (not in every state) |
| Terms | 5, 10, 15 or 30 years |
| Draw structure | 100% drawn at origination · repaid principal can be redrawn for 2–5 years, each redraw priced on its own date |
| Funding time | As few as 5 business days, on eligible lines, with remote online notary on lines under $400,000 |
| Origination fee | 0% – 4.99% of the initial draw, on eligible lines |
| Property use | Primary residence, second home and investment property; the lender confirms property-type eligibility |
| Combined LTV | Varies; 85% used only for illustrative equity arithmetic |
| Credit | Soft pull to see an offer · minimum generally 640, 680 on investment property |
| Ownership | Owners on title individually, jointly or in a revocable trust — not an LLC |
| Availability | Varies by state |
PROGRAM FACTS AS OF OCTOBER 2026 — not a quote, an offer or a commitment to lend. Rates, terms and eligibility are set by the lender and change.
What matters beyond rental income?
Eligibility includes verification of personal income rather than treating property rent alone as the qualification test. Existing liens, credit, property type, title and insurance matter; an LLC-held property needs an alternative such as DSCR cash-out.
How should a landlord size the line?
Subtract existing liens from an illustrative combined-LTV allowance, then compare that potential line with the cash actually needed. A full draw creates a payment obligation immediately, so keep reserves and a documented repayment plan.
Worked example — illustrative, not an offer
| Rental value | $500,000 |
|---|---|
| Illustrative 85% combined-LTV allowance | $425,000 |
| Less first mortgage | −$200,000 |
| Potential line before fees | $225,000 |
Arithmetic only, not a closing or a loan quote. Actual value, combined LTV, fees and eligibility are determined by the lender.
WHAT YOU'LL NEED
- Property and mortgage details — address, estimated value and all existing liens.
- Ownership and personal income — the lender verifies eligible ownership and personal income.
- Use and repayment plan — include funds needed, timing and reserves.
FREQUENT QUESTIONS
- Can an LLC qualify?
- Not for this HELOC program; eligible owners are individuals and revocable trusts.
- What is the investment credit floor?
- The minimum credit score is 680; meeting the floor is not approval.
- Is 85% guaranteed?
- No. It is an illustrative assumption; actual combined LTV varies.
- Can I keep my first mortgage?
- A second-lien HELOC leaves the first mortgage in place; both obligations must be paid.
RELATED
TERMS IN THIS LESSON
PART OF DSCR ACADEMY → COURSE 10
IN THIS COURSE
- 10.1Home equity as investor capital
- 10.2HELOC vs cash-out refi
- 10.3HELOC on a rental
- 10.4HELOC to buy a rental
- 10.5Fixed-rate HELOC
- 10.6How fast a HELOC funds
- 10.7HELOC requirements
- 10.8HELOC fees and costs
- 10.9HELOC on a second home
- 10.10What a HELOC is for an investor
- 10.11HELOC versus cash-out
- 10.12Using equity to buy the next rental
Reviewed October 2026 · Home equity lines are offered through a lending partner; Silt Capital does not originate HELOCs. Terms and eligibility are set by the lender.