HELOC vs DSCR cash-out refinance for a landlord
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.
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.
Which structure preserves my first mortgage?
A HELOC leaves the first mortgage intact but adds a payment on the new borrowing. Cash-out pays off that first mortgage, so compare the full obligations, fees and repayment terms using actual offers rather than assuming either option is cheaper.
What decides the route for an LLC?
The ownership rule excludes LLCs. Start with a DSCR cash-out review for an entity-owned rental rather than treating the HELOC as an available option.
Worked example — illustrative, not an offer
| Existing mortgage | $300,000 |
|---|---|
| New money needed | $150,000 |
| HELOC route: first plus new line | $300,000 + $150,000 |
| Cash-out route: replacement before costs | $450,000 |
| Total principal before costs in either scenario | $450,000 |
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 either option always cheaper?
- No. Compare actual fees, payments, terms and total cost over your expected holding period.
- Can I use a HELOC on an LLC rental?
- Not through this program.
- Does the HELOC use a DSCR test?
- Eligibility includes verification of personal income; rental income alone is not the same as a rent-qualified DSCR loan.
- Can Silt review both routes?
- The desk can review the rental refinance and help you assess a HELOC referral; the lender sets HELOC eligibility.
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.