DSCR HELOC Loans
DSCR HELOC Loans For Real Estate Investors
DSCR HELOC loans allow real estate investors to tap into the equity of their investment properties without using personal income or tax returns to qualify. Access flexible financing for rental properties and grow your portfolio using the equity in your investment properties.
No personal income required
Access up to 70% of the property’s value
Second liens allowed
Rates starting at 8.24%
DSCR HELOC LOAN HIGHLIGHTS
dSCR HELOCs are the best line of credits for investment properties
Created for real estate investors who are looking to access equity of their rentals
DSCR HELOCs are designed for real estate investors who need to tap into the equity of their rentals without refinancing. No personal income required
No tax returns, W2s or pay stubs are ever required on our DSCR HELOCs. We qualif you on the rental income of the property
True HELOC program, not a cash out refinance
We offer draw periods up to 5 years and 30 year repayments on DSCR HELOCs
Flexible ownership types
Close in an LLC or business entity
Airbnb and short term rental qualify too
Our DSCR HELOC program also qualifies on short-term rental properties.
How Your DSCR HELOC Amount Is Calculated
With a DSCR HELOC, the biggest number is not your personal income. It is the equity position of the investment property.
The basic formula is simple:
Estimated available HELOC amount = (Property Value x Maximum Allowed LTV) - Existing mortgage balance
For example, if your rental property is worth $500,000 and the program allows up to 70% combined loan-to-value, the maximum combined debt would be $350,000.
If your current mortgage balance is $250,000, your estimated available line could be around $100,000 before closing costs.
The calculator gives you a quick estimate, but the final line amount depends on property value, current liens, credit score, rental income, property type, and program guidelines.
For a more accurate estimate, navigate to Mortgage Match and see how much HELOC you can qualify for.
minimum requirents for a DSCR loan
credit score
680
Maximum Loan-to-value
70%
Debt-to-income ratio
None
Mortgage insurance
Not Required
Occcupancy
Investment only
Loan limits
Up to $1 Million
draw period
3 and 5 year allowed
DSCR Loans may be a good fit for you if...
Access equity without refinancing
Use property cash flow to qualify, not your personal income
Finance renvoations, purchases or business growth
Want to have a true line of credit that you can access anytime, anywhere.
What Can You Use a DSCR HELOC For?
A DSCR HELOC gives real estate investors flexible access to capital without replacing the existing first mortgage.
Common uses include:
Renovating a rental property
Use the line of credit to update kitchens, bathrooms, flooring, roofing, HVAC, or other improvements that may help increase rent or property value.
Buying another investment property
Use available equity from one rental property to help fund the down payment or closing costs on the next deal.
Covering short-term capital needs
Use the HELOC as a liquidity tool for repairs, reserves, vacancies, or temporary cash flow needs.
Scaling your rental portfolio
Instead of selling a property or refinancing into a completely new first mortgage, a DSCR HELOC may help you access equity while keeping your current loan in place.
DSCR HELOC Available For a Short-Term Rental? Absolutely
This is one of the most common questions we receive about our DSCR HELOC program.
Is a DSCR HELOC available for an Airbnb property?
You bet.
Our DSCR HELOC can help you leverage your Airbnb, VRBO, short-term vacation rental home without affecting your current first mortgage.
Here are some common requirements.
Minimum 680 credit score
Maximum 65% CLTV
Minimum DSCR of 1
Beachfront, Mountain Cabins, Non-Warrantable condos OK
DSCR HELOC LOAN FAQ
Frequently Asked Questions
Get answers to some of the most common questions about DSCR HELOC loans for real estate investors
What does DSCR Mean?
DSCR stands for Debt Service Coverage Ratio, which measures a property’s rental income compared to its mortgage payment.
What is a DSCR HELOC?
A DSCR HELOC is a home equity line of credit designed for real estate investors. Instead of using personal income, we qualify baesd on the rental income and cash flow of the investment property.
Can I close a DSCR HELOC under an LLC?
Yes. We allow you to title the property under an LLC or business entity.
Are there any prepayment penalties on a DSCR HELOC?
No. There are no prepayment penalties on our DSCR HELOC programs. You may pay off the line of credit early anytime without any penalties.
What can I use a DSCR HELOC for?
Our investor clients commonly use DSCR HELOCs for property renovations, down payments on other investment properties or portfolio expansion.
ready to explore your DSCR HELOC options?
Let’s walk through your numbers, monthly payment, and available DSCR HELOC options so you can understand the best path forward.
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