HELOC on an investment or rental property
Available, with a higher credit bar than a home you live in.
Yes, with a higher credit bar. On the line we place, second homes and investment properties need a 680+ credit score. The property still has to be an eligible type, and extra rules apply if it’s held in an LLC.
What changes for a rental
- Credit: 680 minimum, compared with 640 for a home you live in.
- Everything else is the same: the 50% debt-to-income limit, eligible property types, no more than 2 existing liens, and the credit history windows.
Holding the rental in an LLC
- You must own at least 25% of the LLC.
- Minimum credit score of 700 for an investment property held in an LLC.
- Combined loan-to-value up to 70%.
- The LLC must be in good standing, with a valid purpose, domicile and ownership structure, and no bankruptcy or open litigation.
Multi-unit rentals
Duplexes and 3–4 unit properties are eligible. Occupancy sets the credit bar: a unit you live in is a primary residence, while a building you don’t is an investment property needing a 680+ score.
State occupancy accurately
A home you live in and a rental are underwritten differently. Describing a rental as your primary residence doesn’t just risk a decline. It’s a misrepresentation on a loan application.
Tell us how you’re paid
We’ll tell you whether it verifies, and what else can help you qualify.
Investment Property: questions
Yes, if you have a 680+ credit score, the property is an eligible type, and the application meets the other requirements.
You need at least 25% ownership of the LLC and a 700+ credit score, and the property can’t be your primary residence. Combined loan-to-value can’t be above 70%. Have the operating agreement, the articles of organization and a certificate of good standing dated within 60 days of closing ready; if the operating agreement doesn’t state a business purpose or who may sign for the company, a signed business resolution covers it.
Yes. Duplexes and 3–4 unit properties are eligible. If you don’t live in the building, it’s an investment property and needs a 680+ credit score.
These are the requirements for the home equity line we place. Other lenders set their own guidelines, and some are more flexible.