Second Position HELOC on Air BNB
Real Estate Agent · Kennebunk, ME · Member since 2021 · 48 posts · 30 votes
Second Position HELOC on Air BNB
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Lender · Chicago, IL · Member since 2025 · 204 posts · 101 votes
6moAt 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.
7 Replies
- 6moJason WrayPro MemberBanker · Nationwide · Member since 2020 · 2k+ posts · 1k+ votes
Brandon,
Most Banks/Lenders will offer a 2nd Heloc/Heloan on a rental property but they seem to have a common Max CLTV which is 75%. If you are at 63% it does not leave much room 12% minus closing costs.
Your best bet would be to do a Cash out refinance and have one mortgage and one payment.
- Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes6mo
Typically, your first position lender will not allow for any additional debt on a DSCR loan. Have you looked into that? While chances of them finding out would be rare, it would still put you in a default position, so something to be aware of.
7e investments53 Reviews - Lender · Chicago, IL · Member since 2025 · 204 posts · 101 votes6mo
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.
- 6moErik EstradaBusiness MemberLender · Member since 2022 · 6k+ posts · 1k+ votes
Quote from @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!
There are DSCR 2nd position loans available, up to 75 CLTV
LuxePrivate Investments LLC 570 Reviews - Investor · Austin, TX · Member since 2021 · 497 posts · 127 votes6mo
Hey, with a $750k appraisal and only around 63% leverage on the current DSCR, this sounds very workable.
You're smart not to touch the first lien if there's a prepay attached. In cases like this, I'd usually look at portfolio lenders, private banks, or non-QM shops that allow investment-property seconds rather than forcing a full refi. STR cash flow can definitely help the story too.
I help investors structure deals like this pretty often. What state is the property in? That’ll determine which lenders are most realistic for a clean 2nd-position option.
- 5moDarren KurilkoPro MemberLender · Venice, FL · Member since 2025 · 27 posts · 1 vote
We can do a Business HELOC in ME - up to 70% - Let me know. Can close inside 7 days
Darren Kurilko - 941-800-8534
SizzleCapitalGroup
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