Home equity
Investor HELOC
Equity trapped in a rental does nothing. A line of credit against it turns a held asset into buying power.
Quick Answer
An investor HELOC is a revolving line secured by a non-owner-occupied property, letting an investor access equity for reserves, renovations, or the next acquisition without disturbing a low-rate first mortgage. Combined loan-to-value limits are usually tighter and pricing higher than on a primary residence, reflecting occupancy risk. Draw period, rate structure, and qualification method — personal income or property cash flow — vary by lender.
How investors use it
- Funding down payments on the next acquisition
- Covering renovation costs without a hard money loan
- Bridging between a purchase and permanent financing
- Holding reserves available without carrying the cost of drawn funds
Fewer lenders play here
HELOCs on investment property are a narrower market than owner-occupied lines, and terms differ meaningfully between the lenders that offer them. That is precisely where shopping the file pays off.