HELOC on Investment Property: Complete Guide for Real Estate Investors

If you’re a real estate investor looking to unlock the equity trapped in your rental properties, a HELOC on investment property could be a viable financing tool worth considering. Nevertheless, it does not apply to all people, and one should know the conditions and stamina to proceed. Investment properties are considered riskier by lenders, and thus they have more difficulties demanding more requirements, higher rates, and fewer choices.

So, can you get a HELOC on investment property? Absolutely. However, you would have to know where to seek this financing, what requirements you would have to fulfill, and how to leverage this funding device effectively. In this guide, we’ll break down everything you need to know about investment property line of credit options, compare them to alternatives, and help you decide if this strategy fits your real estate goals.

What Is a HELOC on Investment Property?

A HELOC on investment property is a revolving line of credit secured by the equity in a rental or investment property you own. Unlike a traditional home equity loan for investment property, which gives you a lump sum upfront, a HELOC works more like a credit card. You draw funds as needed during a set draw period (typically 5–10 years), and you only pay interest on what you actually use.

Here’s how it works:

Draw Period: You can withdraw money up to your approved credit limit. In this stage, interests are paid, mostly paying interest only, by most lenders.
Repayment Period: After the draw period ends, you enter a repayment phase (usually 10–20 years) where you pay back both principal and interest.

Example Timeline:

Years 1-10: Draw period (access funds, pay interest only)
Years 11-30: Repayment period (pay principal + interest, no new draws)

How Is It Different from a HELOC on a Primary Residence?

While the basic structure is similar, there are key differences when using HELOC for investment property:

Increased Interest Rates: It is more expensive for the lender due to the higher default risk of investment properties. If tenants stop paying rent or the property sits vacant, you might struggle to cover the HELOC payments. According to Bankrate and industry data from early 2025, investment property rates typically run 1-2 percentage points higher than primary residence HELOCs.
Stricter Qualification Requirements: Expect tougher credit score minimums, lower loan-to-value ratios, and more documentation. The Consumer Financial Protection Bureau (CFPB) notes that lenders impose these standards due to increased default probability on non-owner-occupied properties.
Fewer Lenders: Not all banks offer HELOC on rental property. Major lenders like Rocket Mortgage don’t provide this product at all, limiting your options significantly.
Increased Cash Reserves: Lenders would like to have evidence that you can make 6-18 months worth of payments without gaining rental income. The particular need is determined by the size of your portfolio of property and the general profile of your finances.

Can You Get a HELOC on Investment Property? Who Offers Them?

Yes, however, to locate an appropriate lender, one has to research and wait. This market is often not taken by the traditional banks as it is perceived to be risky, and therefore, your best alternative is the specialized lenders.

Types of Lenders That Offer Investment Property HELOCs:

Regional and Community Banks: Smaller banks tend to be more versatile than the national chains and could offer local real estate investor programmes.

Credit Unions: Credit unions, which are member oriente,d provide investment property financing services on a cornerstone basis with more competitive terms and more personalized services.

Specialized Lenders: Companies like Federal Hill Mortgage and Figure focus specifically on real estate investors. These lenders usually provide special benefits such as options of LLC registration and shorter approval periods, some up to 2 weeks.

Portfolio Lenders: These lenders hold their loans on their books as opposed to selling to a secondary purchaser, enabling their terms to be used in a more tailored way in consideration of your entire financial profile.

Real Estate Investment Firms: Some firms specializing in investor financing offer HELOC products alongside other investment property financing options.

Pro Tip: This would require a lot of time, but you can save considerable time by hiring a mortgage broker who specializes in investment properties. They have connections with lenders that you otherwise would not be able to find a connection to using regular searc,h and they are able to pair you with the best solutions to your problem.

Investment Property HELOC Requirements: Detailed Qualification Criteria

Qualifying for a HELOC on a rental property is tougher than getting one on your primary residence. The following is what the majority of lenders will demand:

Short Qualification Application:

Credit score 720 and up (680 minimum at various lenders)
Combined LTV ratio 75-80% or less
Debt-to-income ratio 43% or lower
6-18 months cash reserves
Registered rental revenues (2 years)
20-25% equity remaining after HELOC draw

1. Credit Score

Expect a minimum credit score of 720 or higher based on FICO scoring standards. It may take scores of 680, and some lenders will grant you, though at very high rates, as high as 1.5-2% premiums.

Why This Matters: Your credit score demonstrates financial responsibility. Investment properties already carry higher default risk, so lenders need assurance you’ll manage payments even during vacancies.

2. Loan-to-Value (LTV) Ratio

According to CFPB guidelines and standard industry practices, most lenders cap the combined loan-to-value ratio at 75–80%. This implies that in case your investment property has a value of 400,000, and you have 200,000 in mortgage, then you have 200,000 in equity. At 75% LTV, you could access up to $100,000 through a HELOC.

Calculation: (Property Value × 0.75) – Existing Mortgage = Maximum HELOC

Some specialized lenders may go up to 85% LTV, but expect significantly higher interest rates and stricter qualification requirements.

3. Debt-to-Income (DTI) Ratio

Lenders typically require a DTI of 43% or lower, though some may accept up to 50% if you have strong cash reserves and documented rental income. Your DTI includes all monthly debt obligations (mortgages, car loans, credit cards, existing HELOCs) divided by your gross monthly income.

Why This Matters: A lower DTI indicates you have sufficient income to cover all debts plus the new HELOC payment, even if rental income temporarily stops.

4. Cash Reserves

You’ll need to prove you have 6–18 months of mortgage and HELOC payments saved in liquid assets. This cushion cushions lenders in case of a lowering of your rental income by vacancy or non paying tenants.

The particular requirement is based on:

Properties in your portfolio (an increase in the number of properties would lead to an increase in the number of reserves required)
Property location and market stability
General financial capabilities.
Do you have other sources of income other than rental property?

5. Rental Income Documentation

Lenders would want to appreciate evidence of regular rental earnings. Be prepared to provide:

Lease agreements showing current rental rates and tenant history
Tax returns (Schedule E) showing rental income for the past 2 years
Bank statements proving regular deposit of rent payments
Property management statements if you use a management company

Gross rental income, vacancies, and maintenance costs will also be calculated, as 75% of the gross rental income will only be counted by most lenders in the calculation of your qualifying income.

6. Property Equity

You must have at least 20–25% equity remaining in the property after the HELOC is fully drawn. The lenders will not allow you to borrow 100 percent of your equity and this poses too much risk to both the EU and the lender.

HELOC Rates Investment Property: What to Expect in 2025

Interest rates on investment property HELOCs are typically 1–2 percentage points higher than rates for primary residences. According to recent data from Bankrate and Federal Reserve reports, investment property HELOC rates in early 2025 typically range from 8.5% to 12%, depending on:

Your credit score and financial profile
The amount of equity in the property
The lender’s risk assessment and underwriting standards
Current Federal Reserve policy and prime rate movements
Your overall debt-to-income ratio

Disclosed rates indicate estimates of the rates of borrowers with excellent credit nationally. Your actual rate will depend on credit score, property location, loan amount, and individual lender policies. Depending on the conditions of the markets, rates may vary on a daily basis.

Variable vs. Fixed Rates

Most HELOCs come with variable interest rates tied to the prime rate, meaning your payments can fluctuate as the Federal Reserve adjusts interest rates. Other lenders are also offering fixed rates or even the option of rolling some of your balances into fixed rates, but usually at higher initial rates.

Rate Factors Breakdown

Factor	Impact on Rate
Credit Score 760+	Best available rates (8.5-9.5%)
Credit Score 720-759	Mid-tier rates (9.5-10.5%)
Credit Score 680-719	Higher rates (10.5-11.5%)
LTV above 70%	+0.25% to 0.5%
DTI above 40%	+0.25% to 0.5%
Multiple properties	Varies by lender

How to Get the Best Rates

Compare More Lenders: You should not accept the first tariff. Not less than 3-5 lenders, such as regional banks, credit unions, and special lenders.

Fix Your Credit Score: A 20 point difference can get you a discount of 0.25-0.5 percent, potentially costing you thousands in interest over the life of the loan.

Consider a Shorter Draw Period: Some lenders offer better rates if you commit to a shorter timeframe, reducing their long-term risk exposure.

Increase Your Down Payment: If you’re using the HELOC to buy another property, a bigger down payment reduces lender risk and may improve your rate.

Lock in Parts at Preferred Rates: You see good rates now, and some of your variable account balance, so lock up part of it in a fixed rate to cushion yourself against any future increases.

How to Apply for a HELOC on Investment Property: Step-by-Step Process

Knowing the schedule of the application will allow you to plan, particularly when you are attempting to close on a new house.

Step 1: Pre-Qualification (1-3 days)

Contact prospective lenders and introduce some financial details. They will give you a good guess of how much you could get as far as what would not hurt your credit rating. Compare the options of different lenders using this step.

Step 2: Get necessary documents (1week)

Gather any information required and then submit an application officially:

Personal Financial Documents:

2 years of personal tax returns
2 years of business tax returns (if applicable)
Recent pay stubs (if you have W-2 income)
Bank statements (2-3 months)
Investment account statements
List of all assets and liabilities

Property-Specific Documents:

Current mortgage statement
Property tax bills
Insurance declarations
Lease agreements for all tenants
2 years of rental income documentation (Schedule E from tax returns)
Property management statements (if applicable)
Recent appraisal (if available)

Step 3: Formal Application Submission (1 day)

Complete the full application with your chosen lender. This will trigger a hard credit inquiry. Most lenders now offer online applications that take 30-60 minutes to complete.

Step 4: Property Appraisal (1-2 weeks)

The lender will request an appraisal in order to ascertain its present value. In the case of investment properties, appraisers take into consideration:

Comparable sales in the area
Current rental income
Property condition
Market trends

The cost of the appraisal will be an average of $400-600.

Step 5: Underwriting and Approval (1-3 weeks)

All documentation is analyzed by the underwriting team of the lender, and a final decision is made. They could demand more documentation during this stage. Be friendly to requests in order to prevent delays.

Step 6: Closing (1 week)

After being allowed, you will request a closing appointment to sign documents. Unlike a purchase transaction, HELOC closings are typically simpler. You’ll review and sign:

HELOC agreement and promissory note
Deed of trust or mortgage (creating the lien on your property)
Truth in Lending disclosures
Right of rescission notice (3-day waiting period before funds are available)

Total Timeline: Most lenders can close an investment property HELOC in 4-6 weeks. Some specialized lenders like Federal Hill Mortgage advertise timelines as short as 2 weeks for well-qualified borrowers.

Common Reasons for Denial (and How to Overcome Them)

Inadequate Cash Reserves: Accumulate savings of not less than 6 months of remuneration at the time of application.

Rental Income Not Documented: File Schedule E with your taxes showing rental income for at least 2 years.

DTI Too High: Pay down other debts or increase your income before applying.

House Price Reduced: When applicable, it is recommended to make some improvements before submitting an application.

Credit problems: Contest Anything on your credit report and fix your credit before you apply.

Maximum HELOC Amount on Investment Property

The maximum HELOC amount on investment property depends on several factors:

1. Property Value and Equity

The largest amount of property that most lenders will allow you to borrow is 75-80 percent of the value of the property, which is not dedicated to any existing mortgages. This is known as the Combined Loan-to-Value (CLTV) ratio.

2. Lender-Specific Caps

Some lenders cap investment property HELOCs at specific dollar amounts regardless of equity:

$250,000 maximum (common for community banks)
$500,000 maximum (regional banks and specialized lenders)
$1,000,000+ (portfolio lenders for high-net-worth investors)

Example Calculation

Let’s walk through a real example:

Property Details:

Current market value: $500,000
Existing first mortgage balance: $250,000
Current equity: $250,000
Lender’s maximum CLTV: 75%

Calculation:

Maximum total debt allowed: $500,000 × 0.75 = $375,000
Subtract existing mortgage: $375,000 – $250,000 = $125,000
Maximum HELOC available: $125,000

Even though you have $250,000 in equity, you can only access $125,000 through a HELOC while maintaining the lender’s required 25% equity cushion.

Pros and Cons of Investment Property HELOCs

Before deciding whether a HELOC is right for you, weigh these advantages and disadvantages carefully.

Advantages:

✅ Limeless Access to Capital: Only what you need and when you need it. You do not pay interest on money that you are not using, as you do with a lump-sum loan.

Real Impact: If you have a $100,000 HELOC but only use $30,000 for a renovation, you only pay interest on $30,000.

✅ Interest-Only Payments During Draw Period: Lower monthly costs while you’re actively using the funds, preserving cash flow for other investments.

Real Impact: On a $50,000 draw at 9% interest, you’d pay approximately $375/month interest-only versus $500+ for principal and interest.

✅ Potential Tax Deductions: Interest may be tax-deductible if used for property improvements, according to IRS Publication 936 and 527 guidelines.

Real Impact: If you’re in the 24% tax bracket and pay $5,000 in deductible interest, you could save $1,200 on taxes. However, tax laws are complex—always consult a CPA familiar with real estate investing.

✅ No Prepayment Penalties: Pay the balance in advance without any additional charges in case of a change in your circumstances or when you do not want to have some debt.

✅ Leverage Existing Equity: Use dormant equity to generate working capital with no sales of properties or other investments.

Real Impact: Instead of selling a property to fund your next purchase, you can keep all properties working for you while accessing needed capital.

Disadvantages:

❌ Higher Interest Rates: Expect to pay 1–2% more than primary residence HELOCs due to increased lender risk.

Real Impact: On a $100,000 HELOC, a 2% higher rate costs you approximately $2,000 more per year in interest.

❌ Risk of Foreclosure: The investment property is used as security. Fail to achieve, and you lose the property and the equity you have worked so hard to acquire.

Real Impact: A property worth $400,000 with $200,000 in equity could be foreclosed, costing you $200,000 in lost equity plus your rental income stream.

❌ Variable Rates Mean Unpredictable Payments: You will be paying a varied amount monthly if the interest rates go higher.

Real Impact: If the prime rate increases 2%, your payment on a $100,000 HELOC could jump by $165/month or nearly $2,000/year.

❌ Tough to Qualify: Stricter requirements mean not everyone will get approved, and the application process is more intensive than primary residence HELOCs.

❌ Fees and Closing Costs: You are likely to pay $1,000 to $3,000 in fees, which include:

Appraisal fees ($400-$600)
Origination charges ( 0-2 of credit line)
Title search and insurance
Recording fees
Maintenance fees (annually) (Some lenders charge between 50-100/year)

Using HELOC for Investment Property: Smart Strategies

Here are the most common and strategic ways investors use HELOCs on investment properties, ranked by popularity and effectiveness:

1. Property Renovations and Upgrades (Most Common)

Using home equity for rental property improvements is one of the best ways to increase cash flow. Upgrades in strategy can be used to support a rent increase and attract longer lasting tenants.

Best Renovations for ROI:

Kitchen remodels (20-40% rental increase potential)
Bathroom updates (15-30% increase)
Adding bedrooms or bathrooms (30-50% increase)
Energy-efficient upgrades (appeal to eco-conscious tenants)
Curb appeal improvements (faster tenant acquisition)

Scenario: You attract $40,000 to totally remodel an old kitchen and bathroom. The house was rented at a rate of 1 500 month before. You are now able to charge more than 1,900/month at an additional cost of 4,800/year after renovations. The enhancements pay off after approximately 8 years, and the property value also goes up.

Risk Warning: Over-improving on your market may turn out to give poor returns. Study other similar rents and then decide about commencing large-scale renovations.

2. Down Payment on a Second Investment Property (Superior Strategy)

Can I use HELOC for a down payment on investment property? Yes, and this is a popular HELOC investment strategy among experienced investors building portfolios.

Using the existing equity, you can purchase more rental property without selling off other investments and without saving up money. This is leverage in the expansion of the portfolio.

Condition: You are holding a total of 150,000 worth of equity in two properties. You secure a $100,000 HELOC and use it for a 20% down payment on a $500,000 property. The annual rent on that property, plus mortgage, insurance, and taxes, was 2,500/month, and maintenance was 2,200/month. The $300/month positive cash flow covers part of your HELOC payment.

Risk Warning: This policy raises the total amount of debt. Total cash flow of all properties must be at least 20-30% greater than all debt commitments, which presents a safety margin. A single vacancy should not pose a risk to your portfolio.

3. Emergency Repairs and Maintenance

There are additional costs that are not foreseen in renting property, such as ruptured pipes, roof leakages, air conditioning, and foundation problems. A HELOC provides immediate access to cash when emergencies strike, preventing small problems from becoming major disasters.

Scenario: On Friday night, your tenant calls complaining of a faulty water heater. Rather than scrambling for cash or putting it on a high-interest credit card, you draw $2,500 from your HELOC to replace it immediately, preventing tenant dissatisfaction and potential move-out.

Risk Warning: Don’t use a HELOC as your only emergency fund. Have separate cash reserves for normal maintenance. Use the HELOC only for true emergencies or opportunities.

4. Bridging Financing Gaps

If you’re between tenants, waiting for a refinance to close, or experiencing temporary cash flow issues, a HELOC can cover mortgage payments and prevent financial strain.

Scenario: You have a house that is not occupied for 2 months (not a rare thing). Rather than dipping into personal savings, you draw $4,000 from your HELOC to cover the mortgage until a new tenant moves in.

Caution Risk: This is short term. If you’re regularly using a HELOC to cover operating expenses, your property may not be cash-flow positive enough to sustain.

5. Scaling Your Portfolio Quickly (For Experienced Investors)

When dealing with competitiveness, you can then have a hand on cash, so you are ahead of the competition that has to seek some mortgage approval. Some investors use HELOCs to make cash offers, then refinance after closing.

Example: You are in a low priced property of $300,000. Using $60,000 from your HELOC plus $240,000 borrowed from a hard money lender, you make a cash offer and close in 10 days. After minor repairs, you refinance with a conventional mortgage at 75% LTV ($225,000), paying off the hard money loan and returning most HELOC funds.

Risk Warning: It is a complex strategy that needs a great knowledge and experience in the market and the use of various instruments of financing. It is high risk in case your refinance does not justify the value of the property.

Risk Management: What Can Go Wrong and How to Protect Yourself

The knowledge of risks is as crucial as that of benefits. The following are some of the risks that may occur and how each of them can be reduced:

1. Over-Leveraging Your Portfolio

The Risk: By lending excessively against your properties, there is no insurances to the market slumps or income interruptions. When there are several vacancies of properties at the same time, you may have problems meeting the debt obligations.

The Consequence: Property forced sales at not very good prices, or even worse, multiple property foreclosures.

Protection Strategy:

Do not exceed more than 70 percent total equity in all properties borrowed.
Keep a period of 12 months of reserves that are sufficient for all debt obligations.
Make sure that the combined cash flow of all the properties is more than the debt service by no less than 25%.
Test your portfolio: How can you survive in case of an empty portfolio of 2 properties at once?

2. Variable Rate Increases

The Risk: Most HELOCs carry variable rates tied to the prime rate. When the Federal Reserve raises rates, your payment increases—sometimes substantially.

Example Scenario: You have a $100,000 HELOC at 9%. Assuming a growth in the rates by 3% in two years, the payment of interest contributions would be greater: now you can afford to pay twice as much money, the sum now is 1000/month, which amounts to 3000/year to the additional payment.

Protection Strategy:

Premit the ability to make payments at an increased rate by 3-4%.
When rates are good, then convert portions to fixed rates.
Make extra principal payments during the draw period to reduce the balance
Arrange rate raises with your lender.

3. Property Value Decline

The Risk: When the prices of homes decrease drastically, there is a risk that you may be given a mortgage greater than the value of your home (negative equity). In case of a decline in values, some lenders might either freeze your credit line or ask you to repay part of your money.

Example Scenario: You borrowed 125,000 dollars on a property you had an estimated valuation of half a million (had a second mortgage worth 250,000). The value decreases to 400,000 and the market drops by 20%. Your combined debt ($375,000) now represents 94% LTV instead of 75%.

Protection Strategy:

Borrowing against the markets that are stable or can be appreciated.
Leave larger equity cushions in volatile markets (60-65% CLTV instead of 75-80%)
Expand into a variety of markets, if possible.
Oversee the local market status on a regular basis.

4. Extended Vacancy Periods

The Risk: Properties sitting vacant for extended periods drain cash reserves while HELOC payments continue.

Example Scenario: You used HELOC funds for a down payment on a new property, expecting rental income to cover payments. The property has been lying unused for 4 months, either because it is on the market or due to renovation postponements. You will have to cover 2,000/month out of pocket, 8,000 in total unexpected expenses.

Protection Strategy:

1-2 months vacancy to use annually in calculations to determine cash flow.
Keep a separate emergency fund that can sustain 3-6 months of expenses per property.
Take into consideration lease guarantees or rent protection insurance.
Profiling of tenants to minimize the turnover.

5. What Happens If You Default

The Process: Missing payments on a HELOC follows a similar path to mortgage default:

30-60 days late: Late fees added, credit score damaged
90 days late: Lender may freeze your credit line, preventing further draws
120+ days late: Lender begins foreclosure proceedings
Foreclosure: Property sold at auction, lender paid first (primary mortgage), then HELOC lender receives remaining proceeds

The Impact: You forfeit the property and the equity. In case the sale proceeds fail to cover the loans, there is a possible default on the loan. Your credit rating reduces to 200-300 points, and it is very hard to finance in the future.

Protection Strategy:

Immediately communicate with lenders in case you expect to have problems with payments.
Numerous lenders have hardship programs temporarily.
Take into account the voluntary selling of property before foreclosure in case it cannot be supported.
Do not disregard lender communications- active communication can be what makes things work.

Home Equity Loan vs HELOC on Investment Property: Complete Comparison

Not sure whether to choose a home equity loan or a HELOC? Here’s a comprehensive comparison:

Feature	HELOC	Home Equity Loan	Cash-Out Refinance
Disbursement	Revolving credit line	Lump sum upfront	Lump sum (new mortgage)
Interest Rate	Variable (usually 8.5-12%)	Fixed (usually 8-11%)	Fixed (usually 7-9.5%)
Payment Structure	Interest-only during draw, then principal+interest	Fixed monthly payments from day one	Fixed monthly payments
Flexibility	Draw as needed up to limit	One-time access	One-time access
Closing Costs	$1,000-$3,000	$1,500-$4,000	2-5% of new loan amount
Access Speed	4-6 weeks	4-6 weeks	6-8 weeks
Best For	Ongoing projects, emergencies, uncertain costs	Large one-time expenses with fixed costs	Lowering the overall interest rate while accessing equity
Risk Level	Higher (variable rates)	Medium (fixed rate)	Lower (fixed rate, longer term)

Decision Guide:

Choose a HELOC if you:

Need flexibility to draw funds over time
Don’t know the exact costs upfront
Want interest-only payments initially
Plan to pay off the balance relatively quickly
Are comfortable with variable rate risk

Choose a Home Equity Loan if you:

Need a specific amount for a one-time expense
Want payment predictability with fixed rates
Prefer consistent budgeting
Plan to hold the loan long-term

Choose a Cash-Out Refinance if you:

Can get a significantly better rate on the first mortgage
Want to consolidate multiple debts
Need the lowest possible interest rate
Don’t mind resetting the mortgage term

Tax Implications of HELOC on Investment Property

Tax Disclaimer: Tax laws are tricky, and they can greatly differ depending on the circumstances of an individual. The data in this segment is generic and may not be viewed as tax advice. Take advice from a licensed CPA or tax lawyer who is conversant with real estate investment prior to making decisions made on the basis of taxes.

When Is HELOC Interest Tax-Deductible?

According to IRS Publication 936 (Home Mortgage Interest Deduction) and Publication 527 (Residential Rental Property), interest on a HELOC for investment property may be deductible in specific situations:

Tax-Deductible Uses:

✅ Property Improvements on the Secured Property: If you use HELOC funds to renovate, repair, or substantially improve the rental property that secures the loan, the interest is generally deductible as a business expense on Schedule E.

Example: You take a $50,000 HELOC on Property A and use it to remodel Property A’s kitchen and bathrooms. The annual interest of $4,500 is deductible from the rental income of Property A.

✅ Purchasing New Investment Property: Interest on the amount of money spent to purchase or improve other rental properties could be deductible as investment interest expense.

Example: You use a $80,000 HELOC on Property A as a down payment for Property B. Interest will be deductible from your gross rental income.

Not Tax-Deductible:

❌ Personal Expenses: If you use HELOC funds for personal use (vacations, cars, credit card debt, primary residence improvements), the interest is not deductible for investment properties.

❌ Exceeding Acquisition Debt Limits: The Tax Cuts and Jobs Act (TCJA) modified deduction rules. Although investment property debt has no equivalent 750,000 limit as primary residences, various requirements exist with respect to investment interest limits.

Key Tax Considerations:

Schedule E Reporting: Rental property expenses, including mortgage and HELOC interest, are reported on Schedule E of your personal tax return.

Passive Activity Loss Rules: Passive activity loss rules can limit the use of losses of rental activities (including an interest expense) except in cases where you are a real estate professional.

Capitalized, Deductible: Some improvements should be capitalized that are not to be deducted but to be depreciated. Repairs are normally deductible in the year being incurred.

Record Keeping: Have a scrupulous record of showing:

How HELOC funds were used
Receipts of all improvements/purchases.
Pre and post property valuation.
Rental income and expense record.

TCJA Considerations: The Tax Cuts and Jobs Act provisions expire after 2025. The tax deduction of Home equity debt might alter starting in 2026. Hence, see your CPA on long-term planning.

For comprehensive guidance, review IRS Publication 936 and 527, available at IRS.gov, or consult with a certified public accountant who specializes in real estate taxation.

Investment Property Financing Options: Alternatives to HELOCs

If you’re struggling to qualify for a HELOC or the terms don’t work for your situation, consider these alternatives:

1. Cash-Out Refinance

How It Works: Refinance your current mortgage with more than what you are already owed and get the difference as cash. That is a substitute of your existing mortgage with a new and bigger mortgage.

Pros:

Fixed interest rate (typically 1-2% lower than HELOC rates)
Single monthly payment (no second lien)
More lenders available
Potentially lower overall interest rate than the original mortgage plus HELOC

Cons:

Resets your mortgage term (back to 30 years typically)
Higher closing costs (2-5% of the new loan amount)
Less flexible than revolving credit
May require higher credit scores (740+)

Best For:This is suitable where the investor seeks low fixed rates and the sum of money is necessary in a one-time investment and not continual access to the credit. It works well, especially when you are in a position to secure a cheaper rate in comparison to your current mortgage.

Example: You own a house that is worth $500,000, and you have a mortgage of 250,000 with an interest rate of 5%. You do a cash-out refinance for $375,000 at 4.5%, receiving $125,000 cash (minus closing costs of ~$7,500). You have dropped your rate and tapped equity in a single deal.

2. Portfolio Loans

How It Works: Portfolio lenders retain loans on their balance sheets instead of selling it to Fannie Mae or Freddie Mac. This will be flexible so that you will be able to customize your terms depending on your overall portfolio performance.

Pros:

More flexible underwriting guidelines
Consider portfolio performance holistically
May allow higher DTI ratios
Can accommodate unique property types
Often willing to finance multiple properties simultaneously

Cons:

Higher interest rates than conventional loans
Fewer lenders offer them
May require larger down payments
Relationship-based (works best with established investors)

Best: Advanced investors, having multiple properties, who do not fit into standard lending boxes. It is especially handy when one is growing his portfolio at a fast rate or investing in unusual types of property.

Where to Find: Community banks, credit unions, and specialty lenders of real estate investment.

3. HELOC on Your Primary Residence

How It Works: Instead of getting a HELOC on your investment property, tap equity in your primary home.

Pros:

Easier to qualify (lower rates, less stringent requirements)
Interest rates are 1-2% lower than investment property HELOCs
More lenders available
Larger credit lines are typically offered

Cons:

Your primary home is at risk if you can’t repay
May complicate future refinancing of primary residence
Tax treatment may differ

Best: Investors who have a high share in primary residence and would like more favorable terms, and prefer less difficulty in qualification.

Important: Do not be fooled with collating your main home as security against the investment property. This would jeopardize the housing security of your family.

4. Home Equity Loan (Fixed-Rate Second Mortgage)

How It Works: Obtain a lump sum on the security of the equity of your investment property at a fixed rate of interest payable in monthly installments.

Pros:

Fixed rate provides payment predictability
Know the exact cost upfront
Forced repayment builds equity
Simpler than managing revolving credit

Cons:

No flexibility after initial funding
Paying interest on the full amount immediately
Still has most restrictions of investment property HELOC

Best For: Investors who know exactly how much they need for a specific project with defined costs.

5. Hard Money Loans

How It Works: The short term (6-24 months), high-interest borrowing, through private lenders, but mostly using property values as the primary determining factor, as opposed to credit-worthiness.

Pros:

Very fast approval (days, not weeks)
Less focus on credit score and DTI
Asset-based lending
Good for properties that don’t qualify for traditional financing

Cons:

Very high interest rates (10-18%)
Significant points/fees (3-5% of loan amount)
Short repayment period
Typically require exit strategy

Best: House flippers, bridge financing, poor condition property, or the speed factor is important, and you have a definite refinancing plan.

Example Use: Buy a troubled house in cash with hard money, then renovate the house in 6 months, and then refinance with a conventional mortgage when the property is brought under control.

6. Business Line of Credit

How It Works: If you operate your real estate business as an LLC or corporation, you might qualify for an unsecured or partially secured business line of credit.

Pros:

Not directly tied to a specific property
Can be used for any business purpose
Builds business credit
May offer better terms than personal credit

Cons:

Requires an established business with a revenue history
May require a personal guarantee anyway
Credit lines typically smaller than property-secured options
Higher rates than secured options

Best For: Established real estate businesses with strong revenue and business credit history looking for flexible working capital.

7. Private Money / Peer Lending

How It Works: Borrow money with the help of personal individuals or peer-to-peer lending websites specifically aimed at real estate investors.

Pros:

Flexible terms negotiated directly
May be faster than institutional lenders
Relationship-based rather than purely credit-based
Can structure creatively (equity sharing, profit splits)

Cons:

Typically, higher interest rates
May require giving up some control/profits
Finding reliable private lenders takes time and networking
Less regulatory protection

Best For: Networked investors with connections to private capital sources, or those willing to share profits in exchange for funding.

Best Banks for Investment Property HELOC and How to Choose

Finding the right lender is crucial. Here are the top options and what to look for:

Specialized Lenders for Investment Properties

Federal Hill Mortgage

Specializes in investor HELOCs
Offers LLC registration option
Fast approval (advertises 2-week closings)
Up to 80% LTV available

Figure

Digital-first lending platform
Competitive rates for investors
Streamlined online application
Quick funding process

LendingOne

Focus on real estate investors
Portfolio lending options available
Multiple investment property financing products
Experienced with complex scenarios

Regional Banks and Credit Unions

Many smaller financial institutions offer better terms and more personalized service than national banks. Benefits include:

More flexible underwriting
Relationship-based lending
Local market knowledge
Potentially better rates for existing customers

What to Look for When Comparing Lenders

Interest Rate and Rate Structure:

What’s the current rate?
Is it fixed or variable?
What index is it tied to (prime rate, LIBOR, etc.)?
How often can the rate adjust?
Is there a rate cap?

Fees and Costs:

Origination/application fee (0-2% of credit line)
Appraisal fee ($400-$600)
Title search and insurance ($300-$800)
Recording fees ($50-$200)
Annual maintenance fee ($0-$100)
Early closure fee (if you pay off and close within 2-3 years)
Draw fees (some charge per transaction)

Credit Line Terms:

Maximum credit line offered
Combined LTV allowed (75%, 80%, 85%?)
Draw period length (5, 10, or 15 years)
Repayment period length (10, 15, or 20 years)
Minimum draw requirements

Qualification Flexibility:

Minimum credit score
Maximum DTI ratio accepted
Cash reserve requirements
How do they calculate rental income
Do they count 75% or 100% of gross rents

Customer Service and Reputation:

Responsiveness to inquiries
Clarity of communication
Online reviews from other investors
Accessibility of the servicing department
Quality of online account management tools

Questions to Ask Every Lender

What is your current rate for investment property HELOCs?
What are all the fees associated with opening and maintaining the HELOC?
What is your typical timeline from application to closing?
What documents do you require for investment properties specifically?
Do you allow registration under an LLC?
What happens if my property value decreases during the draw period?
Can I convert any portion of my balance to a fixed rate?
Are there penalties for paying off the HELOC early?
What is your process for credit line increases in the future?
Do you offer rate discounts for existing customers or multiple properties?

Red Flags: Warning Signs of Predatory Lending

⚠️ Avoid lenders who:

Pressure you to borrow more than you need
Are vague about fees and costs
Offer rates that seem too good to be true (significantly below market)
Push you to falsify income or asset documentation
Charge excessive upfront fees before approval
Don’t provide Truth in Lending disclosures
Have numerous complaints with the Consumer Financial Protection Bureau
Are not properly licensed in your state

Lenders mentioned in this article are provided for informational purposes only and do not constitute endorsements. Always compare multiple offers and carefully review all terms before committing.

Real Investor Case Studies: HELOC Investment Strategy in Action

Based on real-life experience (the identities will remain confidential), it is possible to learn both opportunities and pitfalls:

Case Study 1: The Successful Portfolio Scaler

Background: Sarah had 3 single-family rentals in Austin, Texas, all with a large equity. She wanted to buy her 4 th property in a rising community.

Strategy: She secured a $120,000 HELOC on Property #1 (valued at $450,000 with $200,000 remaining mortgage balance). She invested the down payment of Property #4 of $100,000 and retained the remaining $20,000.

Execution:

Property #4 purchase price: $380,000
Down payment from HELOC: $100,000
New mortgage: $280,000
Monthly rental income: $2,400
Monthly expenses (mortgage, taxes, insurance, maintenance): $2,100
Monthly cash flow: $300

Outcome: Within 18 months, Property #4’s positive cash flow covered most of the HELOC interest payments. With a 12-percent appreciation in the market in two years As Property #4 gained value and became worth $425,000, Sarah gained a new equity amounting to a hundred forty five thousand dollars. She refinanced the HELOC into Property #4’s mortgage at a lower rate, consolidating debt.

Key Lesson: Good leverage used at the right time in a market where there is an appreciation can help in a fast-tracked wealth building. The overall values of the portfolio belonging to Sarah had risen by more than 200,000 dollars, and the monthly income had increased.

Case Study 2: The Renovation That Paid Off

Background: Michael is the owner of a duplex that he bought 8 years ago at a cost of 280,000 USD, and is currently priced at 420,000 USD with a 140,000 USD mortgage on it. The property lacked modernised kitchens and bathrooms, so that the property could barely generate more than 2,800/month in terms of rental earnings.

Strategy: He secured a $90,000 HELOC and drew $55,000 to completely renovate both units new kitchens, bathrooms, flooring, and paint.

Execution:

Total renovation cost: $55,000
Pre-renovation rent: $2,800/month ($1,400 per unit)
Post-renovation rent: $3,800/month ($1,900 per unit)
Additional monthly income: $1,000
HELOC interest payment (at 9%): $413/month

Outcome: The $1,000 monthly rent increase more than covered the HELOC interest payment ($413), generating an additional $587/month in cash flow ($7,044 annually). Renovations have recouped themselves in less than 7.8 years by way of higher rent alone. Also, the property value rose to about 480000 on the basis of similar refurbished duplexes.

Key Lesson: Strategic improvements that significantly increase rental income can justify HELOC costs. The trick is to scrutinize how the enhancements give the highest ROI in your market.

Case Study 3: The Cautionary Tale

Background: James owned 2 rental properties and got approved for a $150,000 HELOC. He got the available credit excited and spent $80,000 as a down payment on the third house that was in a developing area. He spent another 40,000 to buy a boat and do some upgrades to his personal cars.

Challenge: Half a year after the third property had been bought, the market had to cool down. The house was empty for a period of 5 months as James tried to find tenants. Meanwhile, he was paying:

HELOC interest: $900/month (on $120,000 drawn)
Mortgage in vacant property: $1,800/month.
Revised estimated costs: 2700/month.

Outcome: During the 3 or so months that James spent his $30,000 emergency fund, he had to sell the third house at a loss to prevent foreclosure. He had lost the down payment and closing costs of about 35000 and the 40000 that he had spent personally. He still owed $120,000 on the HELOC, but now had only 2 properties.

Key Lessons:

Never use investment property equity for personal expenses
Budget for extended vacancies—5 months isn’t uncommon in slower markets
Don’t assume properties will rent immediately
Maintain larger cash reserves than you think necessary
Avoid over-leveraging across multiple properties simultaneously

When You Shouldn’t Get a HELOC on Investment Property

Being realistic about when a HELOC isn’t appropriate is just as important as knowing when to use one.

Don’t Get a HELOC If:

You’re Already Highly Leveraged

If your debt-to-income ratio is above 40% or you have less than 6 months of reserves, taking on more debt increases your vulnerability to any disruption.

The Property Is in a Declining Market

Borrowing on that equity is dangerous in case there is a decline in property value, loss of jobs, or a rise in the vacancy rate in the local markets. You might soon be in the mud.

You’re New to Real Estate Investing

If you haven’t successfully managed at least one rental property through a full market cycle (including vacancies, major repairs, and economic changes), a HELOC adds complexity and risk you may not be prepared to handle.

You Need Money for Personal Expenses

Do not finance a personal expenditure, consumer debt, or lifestyle inflation with investment property equity. This exposes your business resources to non-business risk.

You Can’t Afford Payments During Vacancies.

If losing rental income for 2-3 months would make HELOC payments unaffordable, you’re not financially ready for this tool.

Interest Rates Are Rising Rapidly

During periods of aggressive Federal Reserve rate increases, variable-rate HELOCs can become expensive quickly. Look at fixed-rate options or wait till rates level off.

You Don’t Have a Specific Investment Plan

It is very dangerous to borrow merely because equity exists. All the drawn funds are supposed to be purposeful to yield returns or to safeguard/ increment the already made investments.

Your Credit Score Is Below 680

Lenders may be ready to deal with lower scores, although the rates will be too high (12%+), and most of the investment plans will not be economically viable.

Current Market Conditions for Investment Property HELOCs (2025 Update)

Becoming a knowledgeable reader about lending currently assists you in making the right decisions and having realistic expectations.

Federal Reserve Policy Impact

The Federal Reserve’s interest rate decisions directly affect HELOC rates. The Fed has remained wary of rate changes as early as early 2025, and the federal funds rate remains in a range that leads to approximately 8.5 percent prime rates. Most HELOCs are priced as the prime rate plus a margin of 0% to 3.5%, depending on your qualifications.

What This Means: Investment property HELOCs currently range from 8.5% to 12%, with the best-qualified borrowers accessing the lower end of that spectrum.

Housing Market Trends

Several market factors are affecting HELOC availability and terms:

Appreciating Markets: Properties in markets like Austin, Nashville, Phoenix, and parts of Florida have seen strong appreciation, making HELOCs more accessible as rising equity provides better LTV ratios.

Cooling Markets: Some previously hot markets (like Boise, Portland, and parts of California) have seen price stabilization or modest declines, making lenders more conservative with new HELOCs.

Inventory Levels: Low housing inventory in many markets has kept property values stable or rising, which generally favors HELOC approval.

Lender Appetite for Investment Property Loans

Stiffening Standards: Lenders have tightened their qualification requirements after the pandemic, such as:

Higher cash reserve requirements (12-18 months vs. 6 months previously)
More scrutiny of rental income documentation
Preference for experienced landlords over new investors
More conservative property valuations

Increased Specialization: A greater number of lenders are becoming specialized in working with real estate investors, generating both opportunities (specialized products) and challenges (fewer mainstream products).

Regional Variations

Strong Markets for HELOCs:

Southeast (Florida, Georgia, Tennessee)
Texas (Austin, Dallas, Houston)
Mountain West (parts of Colorado, Arizona)
Midwest (Indianapolis, Columbus)

Challenging Markets:

High-cost coastal areas (San Francisco, Seattle)
Areas with declining population (some Rust Belt cities)
Markets with oversupply of rentals

Predictions for 2025-2026

Based on Federal Reserve guidance and economic indicators:

Rate Outlook: The rate would withstand changes in a relatively steady fashion over the next two years, with a possibility that it lowers slightly (by 0.25-0.5) in case inflation is still decelerating.

Availability: Investment property HELOC availability will likely remain stable, but with continued emphasis on borrower qualification strength.

Competition: With the increasing number of investors who are interested in leverage tools, competition in the properties may rise, which may lead to acceleration of appreciation in the target markets.

Note: Market conditions change rapidly. These observations reflect early 2025 data and should be verified with current sources before making decisions.

Frequently Asked Questions

Can you take out a HELOC on an investment property?

Yes, you can take out a HELOC on an investment property, but it’s more challenging than getting one on your primary residence. You’ll need excellent credit (typically 720+), significant equity (usually 20-25% remaining after the HELOC), substantial cash reserves (6-18 months of payments), and documented rental income. The number of lenders providing this product has decreased. You will find yourself shopping around to regional banks, credit unions, and special lenders.

Can I get a HELOC on an investment property with a credit score below 720?

Credit scores of 680 will qualify someone to work with some lenders, albeit with considerably higher interest rates, possibly 2-3 percent higher than those charged borrowers claiming 740 and above scores. This will incur thousands of dollars every year in extra interest. With scores below 680, finding a lender willing to approve an investment property HELOC becomes very difficult. Improve your credit score before applying.

What banks offer HELOC on investment property?

National banks like Wells Fargo, Bank of America, and Chase rarely offer investment property HELOCs. Your best options include:

Specialized lenders: Federal Hill Mortgage, Figure, LendingOne
Regional and community banks with investor focus
Credit unions (especially those with real estate investment programs)
Portfolio lenders who keep loans in-house

Working with a mortgage broker who specializes in investment properties can help you identify lenders you wouldn’t find through standard searches.

Can I do a HELOC on an investment property if I already have a mortgage?

Yes, absolutely. The HELOC becomes a second lien position behind your existing first mortgage. Lenders will calculate your combined loan-to-value (CLTV) ratio, which includes both the first mortgage and the new HELOC. Most lenders cap CLTV at 75-80% for investment properties, meaning your combined debt cannot exceed 75-80% of the property’s value.

How long does it take to get approved for an investment property HELOC?

The average time is 4-6 weeks between the application and the closing process, but the timeline may be as short as 2 weeks when dealing with a well-qualified loan applicant and some specialized lenders. Factors which have an influence on timing are:

How quickly you provide documentation
Appraisal scheduling and completion (1-2 weeks)
Underwriting complexity (1-3 weeks)
Title search and insurance (1 week)

Being organized with documentation can significantly speed up the process.

Is interest on a HELOC for investment property tax-deductible?

In most ways, yes, however, with significant tamenans. According to IRS Publication 936 and 527, interest is typically deductible if you use HELOC funds to buy, build, or substantially improve the property securing the loan, or to acquire additional rental properties. The interest on personal expenditure is not deductible. Tax regulations are dynamic and evolve, and therefore, under all circumstances, always seek advice from a CPA who is conversant with real estate investment. Keep detailed records of how you use HELOC funds to support deduction claims.

What’s the difference between a first and second lien HELOC on investment property?

A first lien HELOC is relatively rare, but it means the HELOC is the only debt on the property (no existing mortgage). A second lien HELOC is much more common and means your HELOC is secondary to an existing first mortgage. Under foreclosure, the first mortgage holder will receive the initial payment before the second lien holder; hence, being in the second position is more dangerous to the lender, and they demand higher rates and increase the equity cushion.

Can I get a HELOC on a property with tenants currently living in it?

Yes, tenants are actually good in your application as it portrays income from rental. You would have to submit lease agreements with present tenants, the rent record, and probably tenant background documentation. Good tenants in occupied properties are usually rated better than empty ones since they demonstrate plenty of income-generating capabilities.

What if my investment property is owned by an LLC—can I still get a personal HELOC?

It is multidimensional and manufacturer-related. Some specialized lenders (like Federal Hill Mortgage) specifically allow LLC registration of HELOCs. Other financial institutions might insist on a transfer of the property of the LLC to personal ownership first, as things get stuck in terms of liability. Other lenders will not even touch properties owned by an LLC. Should you be concerned with choosing to have an LLC ownership so as to protect your assets, then specifically seek the lenders that allow this structure.

Can I pay off my HELOC early without penalty?

Most HELOCs don’t have prepayment penalties on the balance itself—you can pay it down or off anytime. Most lenders, however, impose an early termination fee in case you close the full credit line within the first 2-3 years (usually 200-500 dollars). This discourages borrowers from opening a HELOC, using it briefly, and closing it, as this costs lenders money. Always review your specific HELOC agreement for early closure provisions.

What happens to my HELOC if property values drop significantly?

If property values decline substantially, lenders may:

Freeze your credit line, preventing additional draws
Reduce your available credit limit
In extreme cases, demand partial repayment to restore LTV ratios
Increase scrutiny during periodic reviews

This is the reason why it is prudent to have equity cushions that are bigger than the minimum. If your CLTV is at 75% and values drop 10%, you’re at 83% CLTV well into lender concern territory.

Can I get a HELOC on a short-term rental (Airbnb) property?

This is much more challenging. Most traditional lenders don’t offer HELOCs on short-term rentals due to:

Income volatility (seasonal fluctuations)
Different risk profile than traditional rentals
Difficulty documenting stable income
Higher operating costs and management intensity

Your best chance is to limit to vacation rental property specific lenders, but they will charge more and have more strict qualification criteria than the traditional rentals.

What’s the minimum property value required for a HELOC?

Depending on the lender, the majority of them need at least a property of 100,000 $150,000 to warrant the underwriting costs and risks. Other lenders will set a minimum investment of at least $200,000. Additionally, most lenders have minimum HELOC amounts (often $25,000-$50,000), so if your available equity doesn’t support at least this much, you won’t qualify.

Do I need to tell my current mortgage lender if I’m getting a HELOC?

You don’t need permission, but your first mortgage lender will find out through the title search and recording process when the HELOC is placed on the property. The majority of mortgage contracts oblige the notice of third-party lienage. The HELOC lender will notify all lien holders as part of the closing process, so this happens automatically. Your first mortgage lender cannot block you from getting a HELOC unless your mortgage agreement specifically prohibits subordinate liens (which is very rare).

Document Preparation Checklist

To streamline your application, gather these documents before starting:

Personal Financial Documents:

[ ] 2 most recent years of personal tax returns (all pages, including schedules)
[ ] 2 most recent years of business tax returns if operating as LLC/S-Corp
[ ] Most recent 2 months of bank statements (all accounts)
[ ] Most recent 2 pay stubs if you have W-2 employment
[ ] Investment account statements
[ ] List of all assets and their values
[ ] List of all liabilities (debts) with balances and payments

Property-Specific Documents:

[ ] Current mortgage statement for the subject property
[ ] Most recent property tax bill
[ ] Current homeowners insurance declarations page
[ ] Copy of deed
[ ] Signed lease agreements for all current tenants
[ ] Last 2 years of Schedule E (rental income/expenses) from tax returns
[ ] Last 12 months of bank deposits showing rent payments
[ ] Property management statements (if applicable)
[ ] Recent appraisal if available (within last 12 months)
[ ] Recent property inspection report if available

Additional Documentation:

[ ] Photo ID (driver’s license or passport)
[ ] Proof of homeowners insurance
[ ] HOA documents, if applicable
[ ] Authorization for credit check
[ ] Explanation letters for any credit issues

Having these documents ready can reduce your approval timeline by 1-2 weeks

Final Thoughts: Is a HELOC on Investment Property Right for You?

A HELOC on investment property can be a powerful tool for real estate investors who understand leverage and risk management. It is flexible, provides access to capital, and allows you to scale your portfolio without selling your assets. However, it is also more expensive, more qualitative, and have actual risks in case the market situation changes or the rental revenues are interrupted.

Before moving forward, honestly assess:

✅ Do I have sufficient equity and cash reserves? You need both to qualify and to weather disruptions.

✅ Can I afford the payments even if my property sits vacant for 3-6 months? This stress test is critical.

✅ Am I using this capital to generate returns, not just cover expenses? Every borrowed dollar should have an investment purpose.

✅ Have I shopped around for the best rates and terms? The first lender you contact likely isn’t offering your best deal.

✅ Do I understand the tax implications? Work with a CPA to maximize deductions and ensure compliance.

✅ Is my overall portfolio properly diversified? Don’t put all properties and equity at risk on one strategy.

If you’ve thoughtfully considered these questions and determined a HELOC aligns with your investment strategy and risk tolerance, it can be exactly the tool you need to take your real estate investing to the next level.

Ready to Explore Your Financing Options?

Lack of capital should not be a factor to stop the growth of your real estate portfolio. Whether you’re considering a HELOC on rental property, a cash-out refinance, or alternative investment property financing options, the key is finding the right fit for your strategy and risk tolerance.

Next Steps:

Compare Multiple Lenders: Contact at least 3-5 lenders, including regional banks, credit unions, and specialized investment property lenders. Request detailed rate quotes and fee breakdowns in writing.

Consult Financial Professionals: Speak with a CPA about tax implications and a financial advisor about how a HELOC fits into your broader wealth-building strategy.

Run Your Numbers: Use the examples and calculations in this guide to model your specific situation. Calculate maximum borrowing capacity, monthly payment obligations, and cash flow impact.

Prepare Your Documentation: Use the checklist above to gather all required documents before applying, streamlining the approval process.

Join Investor Communities: Connect with other real estate investors through local real estate investment associations (REIAs), online forums, and BiggerPockets to learn from others’ experiences.

The right funding will open the doors to possibilities that you did not know of. It is time to start exploring your options and create your dream portfolio.

Disclaimer: This article provides general information about HELOCs on investment properties and should not be considered financial, legal, or tax advice. Interest rates, lending requirements, and tax laws change frequently. Always verify current information with licensed professionals, including mortgage advisors, attorneys, and certified public accountants, before making financial decisions. Lenders mentioned are for informational purposes only and do not constitute endorsements.