A HELOC (Home Equity Line of Credit) is a revolving credit line secured by real estate. Investors use HELOCs to fund down payments, rehabs, or short-term acquisition capital without the cost of a full cash-out refinance. Two flavors exist for investors: (1) primary residence HELOCs (widely available from banks and credit unions), and (2) investment property HELOCs (rare, offered by specialty non-QM lenders and priced higher).
Standard investment property HELOC terms: up to 75% CLTV, $50k-$500k line, 10-year draw + 20-year repayment, variable rate at Prime + 2-4%, 660+ FICO, 12 months of stabilized rental history, and closing in an LLC. Because they're non-QM business-purpose loans, no tax returns or DTI calculation is required — qualifying is based on the property's rent (DSCR-style).
HELOCs shine when acquisition timing is uncertain. Unlike a cash-out refi where you pay interest on 100% of proceeds from day one, a HELOC lets you draw and repay as needed, paying interest only on outstanding balance. Explore our DSCR HELOC page for investment property specifics, or get a HELOC quote.