A DSCR HELOC is a Home Equity Line of Credit secured by an investment property that qualifies on the property's rental cash flow instead of personal income. This is a rare product — most banks won't offer HELOCs on non-owner-occupied real estate — but a handful of specialty non-QM lenders now do, and DSCRloans.net brokers those programs.
Typical DSCR HELOC terms: up to 75% CLTV, $50k-$500k credit line, 10-year draw period followed by a 20-year repayment period, variable rate tied to Prime + margin (typically Prime + 2.0% to 4.0%), and 660+ FICO. The property must be a stabilized rental with 12 months of rental history, and closing is in an LLC just like a first-lien DSCR.
Investors use DSCR HELOCs to fund down payments on the next acquisition, finance rehabs on other properties, or maintain a flexible pool of capital without the transaction cost of a full cash-out refinance. Because the HELOC is only drawn when needed, you don't pay interest on undrawn capital — a huge advantage over cash-out refi when acquisition timing is uncertain. Get a DSCR HELOC quote.