Second Position HELOC on Air BNB

[Brandon Hall]

Checking if anyone knows a reputable company that does 2nd position helocs on Air BnB's. I do not want to refi it and hold both primary and heloc with the same company, I have a prepayment on the original, and have it under a 30 year dscr. Property is at ~63% of most recent appraisal currently, and could easily appraise even higher. Cash flow based off of air bnb is very high and easily will support a heloc. Looking for easiest, least hoops type approach similar to the DSCR refi I did with this after its rehab. I know some local banks in my market that would do it if they had the note/20 year commercial, but like I said I don't want to lose out on the prepayment penalty. Looking for 50-100k, property appraised at 750 last June. Thank you!

[Ebonie Beaco]

At around 63% LTV with strong Airbnb income, you've got enough equity and performance to make this work without touching your first mortgage if its done correctly...

Second position HELOCs on Airbnb or DSCR properties are out there, but they're not as straightforward as a typical HELOC on a primary. A lot of lenders either won't do them on short term rentals or will try to pull your first mortgage over to them. That's where most people hit a wall.

What I've seen work best in scenarios like yours is going with lenders that focus on investor deals. Some will do second position loans or HELOC-style products based on your equity and overall deal strength. In many cases, a closed-end second ends up being the smoother route. It gives you the cash you need without overcomplicating things or disturbing your first loan.

One thing to keep in mind is that even with strong Airbnb income, some lenders won't fully rely on that income for a second lien. They'll lean more on your LTV, reserves, and the overall strength of the property.

Based on your numbers, pulling 50k to 100k is very doable. It really just comes down to getting in front of the right lender that understands short term rentals and is comfortable sitting in second position behind a DSCR loan.

Here’s an example of how this could look for your deal:

• Property value: $750,000
• Current loan balance (approx at 63% LTV): ~$472,500
• Max combined LTV allowed by lender: 75%
• Total allowable debt at 75% CLTV: $562,500
• Available equity to tap: ~$90,000
• Second lien loan amount: $75,000–$90,000
• Product structure: closed-end second (fixed rate) or HELOC-style second
• First mortgage stays in place with no refinance or prepayment penalty triggered

For context, I'm a mortgage broker with over 25 years in the mortgage and real estate space, and I work with investors doing DSCR and Airbnb properties all the time. This exact situation comes up pretty often.

If you want, I can take a look at your deal and help you line up a lender that fits what you’re trying to do. It’s usually just about matching the right product to the deal so you can access the equity without creating new problems on the back end.