HELOC for the down payment on a rental property
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.
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 should be documented?
Keep the line statements, funding record and purchase settlement records together. Tell the purchase lender that funds are borrowed and confirm its requirements before signing a contract; do not assume a pending line is cleared cash.
What costs sit beyond the down payment?
Closing costs, repairs and reserves also need funding. A down-payment-only calculation is not a complete acquisition budget, and both properties remain exposed to their respective debt obligations.
Worked example — illustrative, not an offer
| Illustrative purchase price | $300,000 |
|---|---|
| Assumed down-payment share (not a loan offer) | 25% |
| Down payment: $300,000 × 25% | $75,000 |
| Hypothetical costs and reserves | $15,000 |
| Total cash budget | $90,000 |
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
- Is a 25% down payment required here?
- No. That share is an arithmetic assumption, not a quoted loan requirement.
- Must I disclose borrowed funds?
- Yes. Confirm source-of-funds requirements with the purchase lender.
- Should I rely on five-day funding?
- No. The best-case timing is conditional; allow for verification and closing requirements.
- Does my home secure the borrowing?
- If the HELOC collateral is your primary home, it secures the new debt even when funds buy a rental.
RELATED
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.