Investment property HELOC & HELOAN
What is a DSCR HELOC?
A DSCR HELOC is a second-position line of credit on a rental property that qualifies on the property's rent instead of your personal income. It lets you tap equity while leaving a low-rate first mortgage in place.
- An investment property HELOC is a revolving line secured by a rental — you draw, repay, and redraw instead of taking one lump sum.
- Typical parameters are 700+ FICO and up to 75% combined LTV on non-owner-occupied property.
- A line beats a cash-out when you need flexible, repeated capital for rehabs, earnest money, or short holds.
- You keep your existing low-rate first mortgage in place instead of refinancing it away.
- Line amounts, draw terms, and rates are illustrative and subject to underwriting — not a commitment to lend.
Combined loan-to-value counts your existing first mortgage plus the new line. On a $500,000 rental with a $260,000 first lien, a 75% CLTV ceiling puts the maximum line at roughly $115,000 before adjustments.
Price your investment property HELOC or home equity loan
Enter your scenario to see matching first or second lien equity options from the current wholesale pricing schedule. Results are subject to change and are not an approval, commitment, or guarantee of financing.
Business-purpose investment property financing only. Owner-occupied use is not supported. Property state is required, and only states where this program is currently offered are listed. State does not affect the rate shown.
Current pricing
Pricing shown is based on the current active wholesale pricing schedule and the scenario assumptions you entered. It is not live pricing, not an approval, not a commitment to lend, and not a guarantee of rate, terms, or eligibility. Rates and terms are subject to change and may not be available at commitment or closing. For a first lien, combined loan-to-value is calculated as the requested loan amount divided by property value in this version of the tool. No APR is displayed here. Third-party costs, taxes, and insurance are separate and are not included. Simply Approved Mortgages LLC is a mortgage broker, not the funding lender. Business-purpose investment property scenarios only; owner-occupied use is not supported. Equal Housing Opportunity. NMLS #2620881.
Price a DSCR HELOAN (fixed-rate home equity loan)
Keep your first mortgage and borrow a lump sum against your rental at a fixed rate, qualified on the property's rent. Live wholesale pricing for Florida and Colorado investment properties. Not an approval, commitment, or guarantee of financing.
HELOC vs. cash-out refinance
The deciding factor is usually the rate on your existing first mortgage and whether you need the money all at once.
| Factor | Investment HELOC | DSCR cash-out refinance |
|---|---|---|
| First mortgage | Untouched — keeps your existing rate | Paid off and replaced |
| Access | Revolving; draw and repay repeatedly | One lump sum at closing |
| Rate type | Usually variable (Prime-indexed) | Fixed, IO, or ARM |
| Max leverage | Up to 75% CLTV | Up to 75% LTV |
| Credit floor | 700 | 660 |
| Best for | Rolling rehab and acquisition capital | One large draw, permanent structure |
Get your DSCR Scenario Summary
Complete the short pre-qualification form and we send back a full DSCR analysis: HUD Fair Market Rent, AVM value, calculated DSCR, PITIA breakdown, and the max qualifying loan amount up to 80% LTV.
- HUD FMR rent estimate for the subject property
- AVM property value + max qualifying loan
- Calculated DSCR with PITIA breakdown
- Cash-on-cash and year-one cash flow
Illustration only, generated from the information you enter. Not a loan estimate, pre-qualification, commitment to lend, or approval. Formal pricing, LTV, and terms are issued only after credit review, income/asset documentation, and full underwriting.
Investment Property HELOC Rates vs. DSCR Loan Rates
An investment property HELOC is a revolving line, so its pricing works differently from a fixed DSCR term loan: the line rate is typically variable and tied to an index, while the DSCR options below are fixed-rate quotes priced live for a 30-year term.
Showing both side by side is the point. If you intend to draw once and hold the balance for years, the fixed pricing below is the more direct comparison. If you need flexible access for the next acquisition or rehab, a line behaves differently over time — total interest depends on how much you draw and how long you carry it.
Live pricing unavailable — no current pricing response.
Get My Live DSCR Rates
The cards above are featured examples from the current snapshot. Enter your own property, credit tier, leverage and rent to see every eligible option for your deal.
Rate & Pricing Disclosure: This quote is an indication for the scenario entered and the pricing available at the time shown. Rates and terms are subject to change without notice and may change or may not be available at commitment or closing. This is not a rate lock, loan approval, commitment to lend or offer of credit. APR reflects applicable borrower-paid finance charges and pricing credits for this quote and may be the APR returned with the quote or our own audited calculation where verified borrower-paid finance charges outside the quoted price apply. Additional lender and third-party costs may apply and may not be included in the APR. Payment shown is principal and interest only and excludes taxes, insurance, HOA dues and other applicable costs, so your actual payment will be higher. Simply Approved Mortgages LLC is a mortgage broker, not the funding lender. Business-purpose, non-owner-occupied investment property only. Equal Housing Opportunity.
APR reflects applicable borrower-paid finance charges and pricing credits for this quote. Depending on the option, the APR shown is either the APR returned with that quote or our own audited calculation, used where verified borrower-paid finance charges outside the quoted price apply. Other lender and third-party costs may apply and may not be included in the APR.
Estimated payment is principal and interest only and does not include property taxes, insurance, HOA dues, flood insurance, escrows or other applicable costs.
Rate questions for this page
Do you publish live HELOC rates?
No. Investment property line pricing is quoted per file rather than through the public pricing engine, so we do not publish a line rate here. The figures above are live fixed DSCR quotes shown for comparison only.
Can I hold both a DSCR first mortgage and a HELOC?
Yes, subject to combined loan-to-value limits and the first lienholder's terms. Maximum CLTV varies by program and property profile.
Compare loan officer compensation on your investor loan quote
Loan officer compensation is part of the cost of a mortgage. Simply Approved Mortgages' lender-paid compensation is 1.5% of the loan amount. Enter the compensation shown on another lender's quote to see the difference in dollars.
Compensation difference on this illustration: $3,750.
How lower compensation can help you
When less compensation is built into pricing, there can be room for a lower interest rate, which may lower your monthly payment.
Depending on the rate you choose, pricing can sometimes include a lender credit toward third-party closing costs.
A lower payment can improve your property's debt service coverage ratio (DSCR) and monthly cash flow.
As a mortgage broker we compare pricing from wholesale lenders instead of offering a single bank's retail pricing.
Illustration only, not an offer of credit or a Loan Estimate. Simply Approved Mortgages is a mortgage broker (NMLS #2620881), not a direct lender. Lender-paid compensation is paid by the wholesale lender, not directly by you, and a lower compensation figure does not by itself guarantee a lower rate or lower closing costs. Actual rate, fees and credits depend on credit, property, loan program and market conditions. Business-purpose investor loans in eligible states; consumer residential lending in FL and CO only.
Looking specifically for a 2nd lien HELOC?
If you already have a first mortgage on the rental and want to keep it in place, the second-position version of this product has its own page with the combined loan-to-value math and a pricing tool preset to second lien.
Open the DSCR second-lien HELOC page to price a second-position line on an investment property.
Where a line beats a lump sum
Keep dry powder available so you can move on an off-market deal without liquidating other positions.
Draw per project, repay after the refinance, then redraw on the next property.
Buy with the line, then place permanent DSCR financing on the new property and repay the draw.
Hold an undrawn line as a reserve buffer for vacancies and capital expenditure.
Investment HELOC: benefits and trade-offs
- Preserves a low-rate first mortgage
- Interest accrues only on what you actually draw
- Reusable during the draw period
- Faster and cheaper to close than a full refinance
- Higher credit floor (700+) than first-lien DSCR
- Variable rate — payments move with the index
- Lower availability on 2–4 unit and short-term rentals
- Entity-vested lines are offered by fewer investors
See what line size your equity supports
Send the property address, estimated value, and current first-lien balance for a CLTV scenario.
DSCR loan programs
Every DSCR variant we arrange, with the leverage and credit floor that applies to each.
Buy a 1–8 unit rental qualified on market rent or the in-place lease — up to 80% LTV, no tax returns.
Pull equity out of a rental you already own to fund the next purchase. Up to 75% LTV on the strongest tier.
Replace hard money, a maturing bridge, or a higher-rate note with 30-year fixed rental financing.
A second-position line behind your existing first mortgage on a rental — priced on combined loan-to-value.
For properties that don't fully cover PITIA. Larger down payment and a rate premium instead of a ratio test.
The formula, the rent figure lenders use, and every step from scenario review to closing.
Credit, DSCR floor, down payment, reserves, property type, and entity rules laid out in one place.
A 10-year interest-only period lowers PITIA, lifts your ratio, and frees monthly cash flow.
The honest ledger — what you gain over conventional financing and exactly what it costs.
Current rate bands by DSCR, LTV, and FICO tier — plus what actually moves your pricing.
Run rent ÷ PITIA in seconds and see which pricing tier your deal lands in.
DSCR HELOC loan vs. other investor financing
Two common ways to access rental equity.
| Feature | DSCR HELOC (2nd lien) | DSCR cash-out refinance |
|---|---|---|
| First mortgage | Stays in place | Replaced |
| How funds arrive | Draw as needed | Lump sum at closing |
| Leverage measure | Combined LTV (CLTV) | LTV (commonly ~75% cash-out) |
| Best fit | Low-rate first lien you want to keep | Higher-rate first lien |
DSCR HELOC worked example
A sample rental with an existing low-rate first mortgage.
- Property value
- $400,000
- First-mortgage balance
- $200,000
- Sample max CLTV
- 75%
- Max combined debt
- $400,000 × 75% = $300,000
- Available line
- $300,000 − $200,000 = $100,000
Outcome: A line of up to $100,000 in this sample, subject to rent coverage.
Illustrative only. Not a rate quote, lock, offer, or commitment to lend. Binding terms appear on your Loan Estimate.
DSCR HELOC loan document checklist
Here's what to have ready when you apply. Missing items can be added during processing — but a complete file closes faster.
- Entity documents (Articles of Organization, operating agreement, EIN letter)
- Two most recent months of bank statements showing down payment and reserves
- Current first-mortgage statement
- Appraisal with rent schedule (Form 1007) — ordered during processing
- Signed lease or market-rent support for each unit
- Landlord insurance quote naming the lender as mortgagee
Investment property HELOC questions
Can you get a HELOC on an investment property?
Yes. Investment-property HELOCs and closed-end home equity loans exist for non-owner-occupied rentals, though the credit and equity requirements are stricter than an owner-occupied line: generally 700+ FICO and up to 75% combined loan-to-value.
What is the difference between a HELOC and a DSCR cash-out refinance?
A HELOC sits behind your existing first mortgage as a revolving line you draw on as needed. A cash-out refinance replaces the first mortgage entirely and hands you a lump sum. If your first lien carries a low rate you want to keep, the HELOC preserves it.
What are the credit and LTV requirements?
Typically 700 minimum FICO and up to 75% CLTV including the first mortgage balance, with tighter limits on 2–4 unit properties and short-term rentals. Reserves are usually required.
Can the property be held in an LLC?
Entity-vested lines are available on select programs with a personal guaranty. Availability is narrower than on first-lien DSCR loans, so confirm before you plan around it.
Is the rate fixed or variable?
HELOCs are usually variable, indexed to Prime, with a draw period followed by a repayment period. Closed-end home equity loans (HELOANs) carry a fixed rate and a fixed term.
What can the funds be used for?
Business purposes only — acquisitions, rehab, reserves, or business debt. These lines may not be used for personal, family, or household purposes.
Do I need to be an existing customer to get an investment property HELOC?
No prior relationship is required. The line is underwritten independently on your credit, the property's equity position, and the existing first-lien balance, whether or not you financed the first mortgage through the same channel.
Can I get a HELOC on a short-term rental property?
Availability is narrower and combined loan-to-value limits are typically tighter than on a standard long-term rental, given the added income variability, so confirm eligibility for the specific property before applying.
How long does it take to close an investment property HELOC?
Timelines vary by program but often run comparable to or somewhat faster than a full refinance, since only a subordinate lien is being originated rather than a full first-lien payoff and re-underwrite.
Is there a minimum draw amount on an investment property HELOC?
Programs vary — some require an initial minimum draw at closing while others allow the line to remain fully undrawn. Check the specific program's terms before assuming full flexibility.
Does drawing on my HELOC affect my DSCR on the first mortgage?
No, the first mortgage's DSCR was set at its own closing and is not recalculated when you draw on a subordinate line, though your combined debt load and the property's overall leverage position do increase.
Can I get a fixed-rate home equity loan instead of a variable HELOC?
Yes, closed-end home equity loans (HELOANs) are available on select programs and carry a fixed rate and fixed term rather than the variable, revolving structure of a traditional HELOC.
Business-purpose loans only; proceeds may not be used for personal, family, or household purposes. Figures are illustrative, subject to change without notice, and are not a quote, offer, or commitment to lend. Program availability varies by state, lender, and property.
Related programs & tools
The main program: qualify on the property's rent instead of your tax returns.
Underwrite nightly-rate revenue from trailing 12-month actuals or market projections.
Voucher-backed rent with the HAP portion treated as the conservative qualifying income.
Short-term, asset-based financing when you need to close before a refinance or sale.
Purchase plus rehab draws on a 12-month interest-only term for value-add projects.
Current rate bands across every business-purpose program we place.
How We Evaluate This Scenario
On a second-lien line, combined loan-to-value — the first-mortgage balance plus the line — is the binding limit, so your available draw is whatever the CLTV cap leaves after the existing lien. Programs differ in how they treat an undrawn line when testing coverage; some count the full committed amount, others the drawn balance, so ask before you size the request.
If the rate is variable, test the payment above today's index rather than at the current rate. A line that clears coverage at the opening rate can stop clearing it after a repricing.
This product is at its best as short-cycle capital — a down payment or a rehab you plan to repay — rather than as permanent leverage on top of a low first mortgage.
Reviewed by Simply Approved Mortgages · NMLS #2620881. Business-purpose investor lending only.
Tapping equity in your own home instead?
This line of credit is secured by investment property. Homeowners 62 and older exploring equity in their primary residence can learn about reverse mortgages on our sister site.
Unlock a line against your rental equity
Same-business-day scenario review on complete submissions.
Get Your Personalized Rate QuoteGet your personalized investor loan quote
Pick the loan type that fits your deal and complete a short, tailored pre-qualification. A licensed loan officer follows up with an initial scenario review once we have your credit authorization and supporting documents — usually the same business day. Formal pricing and terms follow underwriting.
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You can change this any time.Tell us about your scenario
The form below is tailored to DSCR rental loan — only the questions your program needs.