The 30-second answer
You can get a HELOC on a rental, but plan for a tighter box than your primary home: 70–75% combined LTV (vs. 85%+ on a primary), a higher credit bar (680–720+ for best pricing), 6–12 months of reserves, full income documentation, and a rate roughly 1–2 points higher. Fewer lenders offer investment-property lines at all, so the biggest variable is often simply finding one that does — and one that will count the property's rent toward your qualifying income.
1. Loan-to-value: the tightest constraint
The single biggest difference. On a primary residence you might reach 85–90% combined LTV; on an investment property expect 70–75%. So on a $400,000 rental, total liens are usually capped around $280,000–$300,000. Subtract your existing mortgage and what's left is your available line. More of your equity stays locked up than on a primary — that's the lender pricing in risk.
2. Credit score
Investment-property lines are risk-priced, so your score does more work here. 680–720+ gets the best pricing; many programs will still work down to ~660, and some direct programs consider ~600 with compensating factors (low LTV, strong reserves, seasoned rents). The lower your score, the higher your margin over prime — so it's worth knowing your number before you apply.
3. Cash reserves
Lenders want to see you can carry the property if it sits vacant. Expect to document 6–12 months of the total housing payment in reserves — sometimes more if you own several financed properties. Reserves can usually include retirement and brokerage accounts, not just cash.
4. Income — and how rent counts
You'll provide full income documentation, but the good news for investors is that most lenders count a portion of the property's market rent (often 75% of gross, to allow for vacancy and expenses) toward your qualifying income. A lease and, sometimes, an appraiser's rent schedule establish that figure. If your personal tax returns are thin because of write-offs, this is where a lender who understands rental income — or a DSCR alternative — makes the difference.
5. Documentation checklist
- Last 2 years of personal (and business, if applicable) tax returns
- Current lease(s) for the subject property and other rentals
- 2–3 months of bank statements showing reserves
- Mortgage statements for all financed properties
- Proof of insurance (landlord/dwelling policy) on the subject property
- Entity documents if the property is held in an LLC
Requirements at a glance
| Requirement | Primary residence | Investment property |
|---|---|---|
| Max combined LTV | ~85–90% | ~70–75% |
| Credit for best pricing | 700+ | 720+ |
| Reserves | 0–6 months | 6–12 months |
| Rate premium | Baseline | ~1–2 points higher |
| Rent counts toward income? | N/A | Yes, often 75% of gross |
The honest take
The hardest part of an investment-property HELOC isn't usually qualifying — it's finding a lender who offers one and will underwrite the rent properly. Many big banks quietly won't touch them, which pushes investors toward the wrong product. If your file is strong but your tax returns understate the property's cash flow, ask specifically whether the lender counts market rent, and get a DSCR quote alongside so you can compare.
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FAQ
What are the requirements for a HELOC on an investment property?
Expect a lower combined LTV cap (typically 70–75% vs. 85%+ on a primary), a higher credit-score bar (usually 680–720+ for the best pricing, though some programs go to 660 or lower with compensating factors), documented cash reserves (often 6–12 months of payments), and full documentation of income — with a portion of the property's market rent often counted toward qualifying.
What LTV can you get on an investment-property HELOC?
Most lenders cap investment-property HELOCs around 70–75% combined loan-to-value, meaning all liens together can't exceed that share of the property's value. That's roughly 10–15 points lower than a primary-residence HELOC, so you'll leave more equity untapped.
What credit score do you need for a rental-property HELOC?
Most investment-property HELOC programs want 680–720+ for the best pricing. Some direct programs consider files down to around 660 or 600 with strong compensating factors like low LTV, large reserves, or seasoned rental income. Investment-property lines are risk-priced, so a higher score meaningfully lowers your rate.
Are investment-property HELOC rates higher?
Yes. Because a rental is considered higher risk than an owner-occupied home, investment-property HELOCs price above primary-residence lines — often by roughly 1–2 percentage points, depending on LTV, credit, and the lender. The rate is still typically prime plus a margin.
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Keep reading
DSCR Loan vs. HELOC
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Using a HELOC to Buy a Rental
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