A true home equity line of credit on your rental — without refinancing.
Yes, you can open a home equity line of credit on an investment property you already own. Here at Andes Mortgage, we offer investment property HELOCs as both first and second lien positions.
If you already have a low rate on your first mortgage, our HELOC will sit behind your first so that your low rate stays untouched.
As a full service mortgage broker, we work with over 45 wholesale partners across the country and we originate in most states. Thanks to our guideline flexibility, you’ll have several ways to qualify, including your property’s own rental income.
Who offers HELOCs on investment property?
Very few lenders do.
Many big banks quietly stopped writing home equity lines on rentals several years ago, so today they come from a smaller group: portfolio lenders, a handful of credit unions, and brokers who understand and write wholesale second-lien programs.
Most lenders will show you their one product and a take-it-or-leave-it number. As a broker, Andes shops several programs and — more useful — tells you the single constraint that’s limiting your line, whether it’s your credit, the property’s cash flow, or how much equity you’re tapping, before you ever fill out an application. There is no need to run credit or waste time – we do these deals every single day and we understand the needs of our investor clients.
Have a scenario? Run it by us. There are no consultation costs and you’ll get the answers you are looking for. Start here ->
Several ways to qualify — including your rental's income
Your personal tax returns aren’t the only path. Depending on your situation, we can document qualifying income for your line in more than one way — and if the property’s numbers are tight, a low ratio routes to a different program instead of a decline.
Full documentation
W-2s or tax returns, the traditional way. Usually the best pricing and the highest allowed loan-to-value.
Bank statements
12–24 months of personal or business deposits stand in for tax returns. Built for self-employed investors whose returns understate real cash flow.
Rental cash flow (DSCR)
Qualify on what the property earns, not what you earn. No personal income documents needed — the rent carries the payment.
This is the most popular HELOC for investment properties that we have.
Reduced & no-ratio
Property doesn’t fully cover its payment? A DSCR under 1.0 isn’t a no — it routes to a reduced-ratio or no-ratio program, typically at a lower LTV with more reserves.
WVOE or P&L
A written verification of employment or a CPA-prepared profit-and-loss statement, when statements and returns aren’t the cleanest fit.
Investment-property HELOC requirements
These are the ranges we work within across our wholesale partners. Your actual terms depend on which bucket you fall in. This is exactly what we’ll pinpoint for you.
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Requirement
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Detail
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Max combined LTV (investment)
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Up to 80% for strong-credit, full-doc, single-unit files. The DSCR path generally runs 70–75%; 2–4 units, condos, and bank-statement files step down to about 60–65%.
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Credit score
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From the 680s on full documentation. The DSCR path generally wants 700+, with best pricing at 720 and above.
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Ways to qualify
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Full doc · bank statement · WVOE · P&L · DSCR · reduced-ratio (0.75–0.99) · no-ratio (under 0.75) · asset utilization (primary only).
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DSCR floor
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None. A ratio at or above 1.0 earns the best terms; below that, the file routes to a reduced- or no-ratio program rather than a decline.
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Property types
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1–4 units, PUDs, and warrantable condos. Short-term rentals (Airbnb) are eligible on select programs, typically at a 5% lower LTV.
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Line size
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Minimums from $50,000–$75,000; maximums up to $2,000,000 depending on the program.
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Reserves
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From none to 12 months, scaled to the DSCR tier and loan size.
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Seasoning
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Six months on title for investment property. Cash-out within the first 12 months is based on your cost basis (purchase price plus documented improvements) rather than a fresh appraised value.
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Title vesting
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LLC, corporation, or partnership vesting is available on select programs — useful for investors holding in an entity.
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Structure
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Variable-rate line with an interest-only draw period (about 3–5 years) and a 20–30 year total term. A fixed-rate option exists — see below.
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Our Investment Property HELOCs do not have any prepayment penalties.
Pay it off in full when you want, keep the balance at zero when you don’t need it – whatever you want.
The good news? No penalties for an early payoff. This is one of the biggest wins for our investor clients who seek to use equity and minimize their interest payout.
Talk to us about your scenario. Start with Mortgage match ->
The DSCR HELOC: Qualify on the property's rental income, not yours.
By far the most requested way our investors open a line — because it qualifies on the property’s rent instead of your personal income.
Your tax returns, debt-to-income, and day job stay out of the file. A property that covers its own payment (a DSCR of 1.0 or better) earns the best terms, and the ones that don’t still have a path through reduced- and no-ratio options. It’s the version most portfolio and self-employed investors end up using.
Why investors pick it
- Qualify on rent, not personal income — no tax returns or DTI
- Hold the property in an LLC — entity vesting is allowed
- Scales with your portfolio — the count of properties you own isn't the ceiling
Maximum leverage
75% LTV
First-Lien DSCR HELOC
Maximum leverage
70% LTV
Second-lien DSCR HELOC
Using a HELOC to buy your next rental
Because a HELOC is a revolving credit line, it lets you use your equity at your own terms.
Draw against the equity in one rental, use it as the down payment on the next, then pay the line back down as the new property seasons or refinances — and the same line refills, ready for the one after that.
Our wholesale programs explicitly allow drawing a line to purchase another property, so this isn’t a workaround; it’s a supported use case for building a portfolio without waiting to save each down payment from scratch.
Renovate a rental you're keeping
Draw against a rental’s equity to fund the rehab — a roof, a kitchen, a full unit turn — then repay the line as higher rents or a later refinance catch up. Because you only pay interest on what you’ve drawn, it fits staged projects where costs land over time. If you’re buying and renovating in one move, a renovation loan is usually the cleaner tool; a line is for equity you already hold.
Fund your next fix and flip
You can’t put a long-term equity line on a property you’re about to sell — but you can draw a line against equity you already hold, in your home or a stabilized rental, and use that cash as the purchase or rehab capital for the flip. For the portion you can cover this way, it’s often faster and cheaper than hard money. Sell, repay the line, and it refills for the next project.
HELOC or HELOAN? Two ways to tap equity without refinancing
HELOC — a revolving line
- Draw what you need, when you need it
- Variable rate, interest-only during the draw period
- Refills as you repay — best for repeated moves like serial BRRRR
HELOAN — a lump sum
- One fixed amount at closing
- Fixed rate, fully amortizing — a known payment
- Best for a single, defined use with rate certainty
HELOC vs. cash-out refinance
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Investment HELOC
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Cash-out refinance
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Your first-mortgage rate
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Stays as it is
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Replaced by today's rate
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How you get the money
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Draw as needed, reusable
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One lump sum
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Rate type
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Variable
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Fixed
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Lien position
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Second lien
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New first lien
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Best when
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Your first-lien rate is low and you want flexible access
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You want a fixed payment and rates have fallen
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Not sure how much equity you have available for a line of credit on your rental property?
Where your rental is can change the math
See the one thing limiting your line
How we built these numbers
This is general information, not a commitment to lend. Rates, terms, and program availability change, and your specific terms depend on a full review of your file. Andes Mortgage LLC · NMLS #2187991.
Investment-property HELOC FAQ
Can you really get a HELOC on an investment property?
Yes. Fewer lenders offer them than offer lines on a primary home, but they exist as business-purpose second liens. Andes places them through wholesale partners in most states, with up to 80% combined loan-to-value for the strongest files.
Do I need to prove personal income?
Not necessarily. Alongside full documentation, you can qualify on bank statements, a written verification of employment, a profit-and-loss statement, or the property’s own rental income through a DSCR program — where no personal income documents are required.
What if the rental doesn't fully cover its payment?
A debt-service coverage ratio under 1.0 doesn’t automatically end the conversation. Ratios of 0.75 to 0.99 route to a reduced-ratio program, and below 0.75 to a no-ratio program — usually at a lower loan-to-value and with more reserves, rather than a flat decline.
Can I use a HELOC to buy another rental?
Yes — using line proceeds to purchase another property is a supported use case on our programs. It’s the mechanism behind equity recycling and the BRRRR strategy: the line funds the next down payment, then refills as you pay it back.
Can I use a HELOC to fund a fix and flip?
Not directly on the flip itself — a property you’re about to sell has no lease or seasoning, so a long-term equity line doesn’t fit it. What works is drawing a line against equity you already hold, in your home or a stabilized rental, and using that cash for the flip’s purchase or rehab. You sell, repay the line, and it’s available again for the next project.
Can my LLC hold the loan?
On select programs, yes — vesting in an LLC, corporation, or partnership is allowed, which suits investors who hold property in an entity for liability or tax reasons.
Does the state my rental is in matter?
Usually only at the margins — most states treat an investment line as a straightforward business-purpose loan. Texas is the notable exception because of its homestead lending rules, though those apply to primary residences, not rentals. See our Texas guide for the detail.