Home Equity Line Of Credit

Member since 2026 · 6 posts · 1 vote

I own a non-owner-occupied investment property and have been having a difficult time finding a lender that offers HELOCs on investment properties.

I'd like to leverage some of the equity I've built in the property to help fund my next investment. For those of you who have done this, who would you recommend reaching out to for a HELOC on a rental property?

If a HELOC isn't the best option, what other strategies or financing options would you recommend for accessing the equity without refinancing considering my interest rate is 2.5%

I’d especially appreciate recommendations for lenders or credit unions that are investor-friendly and actually lend on non-owner-occupied properties. Thanks!

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Michael Eskenasy

Investor · Pacific Northwest · Member since 2026 · 511 posts · 287 votes

At 2.5%, I’d be very reluctant to solve a second-lien problem by refinancing the entire first mortgage.

The reason you’re having trouble isn’t unusual: a HELOC on a non-owner-occupied property is a much narrower product than a primary-residence HELOC. I’d widen the search beyond “HELOC” and ask smaller banks, credit unions, and portfolio lenders specifically about a rental-property second mortgage, fixed home-equity loan, or secured line against the property/portfolio.

The structure matters more than the label. If you can borrow $75K in a second position at an ugly rate for 12–24 months, but leave a large 2.5% first mortgage untouched for another decade, that can be dramatically cheaper than repricing the entire debt stack just to access the same $75K.

I’d compare everything as:

cost of new capital + duration of that capital + what existing cheap debt gets disturbed.

That 2.5% first is an asset. I’d make somebody show me some pretty extraordinary math before I gave it up.

If you find a couple lenders willing to structure it, post the terms. That comparison would be far more useful than just comparing advertised rates.

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Chris SeveneyBusiness Member
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Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
2w
There are a few out there but have to hunt for them. Recognized many don't go above 60% ltv maybe might find one to go little higher but not much. So if you do find one just recognize the amount you may get could be very limited
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John M.
Investor · Fairfax, VA · Member since 2015 · 1k+ posts · 796 votes
2w
I think TD bank offers them last I remember. Keep in mind that heloc rates on a primary are 6.5%, and I'm sure it's a little steeper with an investment property.
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Stacy RaskinBusiness Member
Lender · Member since 2022 · 1k+ posts · 494 votes
2w
I would recommend using a blended rate calculator to see how much your overall rate will be if you do go with a HELOC. It will show you the overall cost for your first low rate mortgage and whatever additional lien on the property you might get.

HELOCs are debt to income (DTI) loans so you will qualify off of your personal income, debt ratios, credit score, etc. You will need to work with a mortgage broker or bank that has a NMLS license for the state the property is located in.

The LTV for an investment property loan will also be lower for an investment property compared to a HELOC for a primary home.

For your next investment, what kind of investment is it? If a no owner occupied rental property you can do a DSCR loan which will not consider your personal income beyond the down payment to structure the loan. It will be structured off the actual or projected rental property rents not your DTI ratios. Happy to connect to discuss further.
[email protected]818-770-0340
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Michael Domizio
OP
Member since 2026 · 6 posts · 1 vote
2w
Stacy,
Just sent you a message. Looking forward to connecting

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Stacy RaskinBusiness Member
Lender · Member since 2022 · 1k+ posts · 494 votes
2w
Thank you Michael. I sent you a message back. Looking forward to connecting.
[email protected]818-770-0340
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James Driscoll
Banker · MA · Member since 2026 · 120 posts · 31 votes
2w
The 60% LTV ceiling the other poster mentioned is accurate and it's the thing that catches most people off guard when they finally do find a willing lender. If your property is worth, say, $400k and you owe $200k, you might expect to pull $100k or more in equity, but at 60% LTV your ceiling is $240k total debt, meaning only $40k available. That math disappoints a lot of investors. Given that you're protecting a 2.5% first, one route worth looking at is a standalone second mortgage on this property using DSCR underwriting, where qualification is based on the property's rent relative to the payment rather than your personal DTI. It's not as widely available as a primary HELOC, but it exists and doesn't require you to touch the first. Another option some investors use is pulling equity from a different asset, whether a primary residence or another rental with more room, to fund the next deal while leaving the low-rate loan completely alone. The blended rate point the last commenter raised is worth doing before you commit to anything, because if the HELOC rate on the portion you're drawing is 9% or higher, the blended cost across your full debt stack can look very different than the headline number.

James Driscoll
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Michael Eskenasy
Investor · Pacific Northwest · Member since 2026 · 511 posts · 287 votes
2d
At 2.5%, I’d be very reluctant to solve a second-lien problem by refinancing the entire first mortgage.

The reason you’re having trouble isn’t unusual: a HELOC on a non-owner-occupied property is a much narrower product than a primary-residence HELOC. I’d widen the search beyond “HELOC” and ask smaller banks, credit unions, and portfolio lenders specifically about a rental-property second mortgage, fixed home-equity loan, or secured line against the property/portfolio.

The structure matters more than the label. If you can borrow $75K in a second position at an ugly rate for 12–24 months, but leave a large 2.5% first mortgage untouched for another decade, that can be dramatically cheaper than repricing the entire debt stack just to access the same $75K.

I’d compare everything as:

cost of new capital + duration of that capital + what existing cheap debt gets disturbed.

That 2.5% first is an asset. I’d make somebody show me some pretty extraordinary math before I gave it up.

If you find a couple lenders willing to structure it, post the terms. That comparison would be far more useful than just comparing advertised rates.
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- Michael Domizio
  OP
  Member since 2026 · 6 posts · 1 vote
  2d
  Michael, appreciate the insight. Will keep you posted as I narrow down on some things.
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