The Quick Read: No single program owns that label, and the structures in Lendmire’s wholesale network do not include a stand-alone twenty-year repayment phase. The closest fits are a 3-year draw with a 17-year repayment, which adds up to twenty years, and a 5-year draw with a 25-year repayment. Which one suits you depends on the property’s occupancy, your credit, and how long you want the line to run.
- Twenty years is a market habit, not a rule. The contract sets the real draw and repayment lengths.
- On an investment property, the network offers one structure: a 5-year interest-only draw followed by a 25-year repayment.
- On a primary residence or second home, you can choose between 3 years plus 17 years, or 5 years plus 25 years.
- Pricing floats during both phases and never converts to fixed.
- Investment-property lines top out at 70% CLTV and $500,000, with a 700 minimum credit profile.
What “Twenty-Year Repayment” Usually Means
Most people who search this phrase mean the second half of the line. A HELOC runs in two phases. First comes the draw period, when you borrow and repay up to the limit. Then comes the repayment period, when borrowing stops and the balance is paid down.
How large a line the equity supports.
An equity line is sized by combined loan-to-value, occupancy, and credit — not by rental coverage. Switch the occupancy or the credit band and the ceiling moves with it.
Investment-property lines require a 700 minimum credit score; second-home lines start at a 640 minimum and primary-residence lines at 600, and the combined-LTV ceiling steps down as the credit band drops on primary-residence and second-home lines and holds on investment-property lines; the line cap steps down on primary-residence lines and holds at every tier on investment-property and second-home lines.
A debt-to-income ratio above 45% requires 680+ credit. Profiles under 640 are limited to single-family homes. At least 75% of the approved line is drawn at closing. Ceilings, floors, and caps update from Lendmire’s centralized guideline source.
Line estimate
Illustrative estimate only — not a quote, Loan Estimate, approval, or commitment to lend. The rate is an editable assumption; equity-line pricing is variable through both the draw and repayment periods and never converts to fixed. Occupancy and credit drive the ceiling together: an investment property tops out at 70% combined LTV (minimum credit 700, line cap $500,000); a second home tops out at 90% combined LTV (minimum credit 640, line cap $500,000), with the ceiling stepping down as the credit band drops (the cap holds at every tier); a primary residence tops out at 90% combined LTV (minimum credit 600), and its $750,000 maximum line is available only at 75% combined LTV or below with a 700-or-better credit profile (720 on the longer-runway program) and a full appraisal. Lines above $500,000 require a full appraisal. Credit, debt-to-income, property type, and full underwriting review all affect the final line.
Experian describes the typical pattern as a draw period of five to 10 years followed by a 20-year repayment period. It also says terms vary by lender. Some lines run 15 or 20 years in the draw phase alone.
That variation is the trap. “Twenty-year” can mean a 20-year repayment after a long draw, a 20-year draw, or a 20-year total life. Those are three very different loans. Before you compare programs, ask which of the three the document actually describes.
Key Terms Defined
HELOC: A home equity line of credit, a revolving line secured by property that you can borrow against, repay, and borrow again during the draw period.
Draw period: The early phase when you can borrow from the line. Payments in this phase usually cover interest only.
Repayment period: The later phase when borrowing stops. Payments now include principal and interest until the balance reaches zero.
CLTV: Combined loan-to-value, which adds the new line to any existing mortgage and divides the total by the property’s value.
Amortizing: A payment schedule that includes principal, so the balance shrinks to zero by the end of the term.
Balloon payment: A lump sum due at the end of a term, covering the whole remaining balance.
The Structures Our Network Actually Writes
Lendmire is a mortgage broker, not a lender. It places HELOC files with select wholesale lenders, and those lenders run two draw structures on primary residences and second homes. Each one has its own rules, so a quoted figure always belongs to its own structure.
| Feature | 3/17 structure | 5/25 structure |
|---|---|---|
| Interest-only draw | 3 years | 5 years |
| Amortizing repayment | 17 years | 25 years |
| Total life | 20 years | 30 years |
| Investment property | Not offered | Offered |
The 3/17 structure is the one that lands on twenty years of total life. It is not a twenty-year repayment, though. If you want twenty years of principal-and-interest payments, no program in the network matches that exactly. The 5/25 gives you a longer repayment runway, and the 3/17 gives you a shorter, faster payoff.
Tennessee shortens both structures, to 3 years plus 12 years and 5 years plus 10 years. If your property sits there, the totals above do not apply.
Both structures require at least 75% of the line to be drawn at closing. That surprises many people who picture a line as a pool of unused credit. Interest starts on most of the money from day one.
How Underwriting Treats These Lines, Step by Step
A HELOC from this network is not a DSCR loan. A DSCR loan tests the rent against the payment. A HELOC tests you.
1. Credit. The program floor is 600, using a single-bureau score model keyed to the primary wage earner. The report must be no more than 90 days old at closing, and rescores are not allowed.
2. Tradelines and housing history. The 3/17 structure wants two tradelines seasoned 12 months or one seasoned 24. It also wants a clean housing history, applied across every financed property you own.
3. Debt-to-income. The maximum is 50%, or 45% for credit profiles from 600 to 679. A ratio above 45% requires at least a 680 score.
4. The payment tested. Underwriters review your file on the interest-only payment calculated on the maximum draw, not on what you plan to borrow. Size the line with that in mind.
5. Value. Lines at or below $500,000 ordinarily use an automated valuation instead of a traditional appraisal. A higher CLTV may call for a second valuation, and you can request a full appraisal anyway.
6. Exposure. You can hold up to three lines. Combined exposure caps at $2,000,000 on the 5/25 structure and $750,000 on the 3/17. Owning more than 15 financed properties makes you ineligible.
Everything here is subject to lender guidelines and full file review. Nothing is a commitment to lend.
Leverage Depends on What the Property Is
The ceiling changes with occupancy, so quote the one that matches your property.
| Occupancy | Top CLTV | Credit needed | Max line |
|---|---|---|---|
| Investment property | 70% | 700+ | $500,000 |
| Second home | 90% | 720+ | $500,000 |
| Primary residence | 90% | 720+ | $500,000 |
| Primary residence (larger line) | 75% | 700+ (720 on the longer-runway program) | $750,000 |
On an investment property, a 700 score and a 720 score both reach 70% CLTV, and nothing sits above that tier. Market surveys report investment-property HELOC ceilings as high as 90%, per NerdWallet. That is a market-wide figure. The network’s investment ceiling is 70%.
The 90% tier exists only on primary residences and second homes, and only at 720 or better. A primary residence at 700 can reach 75% CLTV up to $750,000 or 85% up to $500,000. The 720-and-up tier at 75% also runs to $750,000.
Lines above $500,000 are for primary residences only. They require a credit profile of 700 or better (720 on the 5/25 structure), cap at 75% CLTV, and need a full appraisal. Texas primary residences are homestead properties and cap at 80% combined loan-to-value, so the higher tiers never apply there.
Choosing the Best HELOC Program for a Twenty-Year Repayment Term
The best program for your situation comes from three questions.
Is the collateral an investment property? Then the choice is already made. The 5/25 is the only structure, and you plan around a five-year draw and 25 years of repayment.
Do you want the line gone sooner? On a primary residence or second home, the 3/17 retires the debt in twenty years. The repayment payment is higher because the same balance is spread over fewer years, so check that your cash flow can absorb it.
Do you want the smallest possible repayment payment? The 5/25 spreads the balance over 25 years. You pay less each month and more interest overall. The longer lien also stays on the property longer, which matters if you expect to sell or refinance.
Picture an investor with a rental property, a 700 credit profile, and plenty of equity. The line caps at 70% CLTV and $500,000, and the five-year draw is often a strong option. Now picture a homeowner at 720 who wants to fund repairs on a second home. That borrower can reach 90% CLTV and can choose the shorter structure if the payment fits. Same product, very different files.
A broker that shops several wholesale lenders matches the scenario to the program. That is the real answer to “best.” It also matters because tradeline rules, housing-history standards, and foreclosure treatment differ between the two structures.
What Happens at the Switch
The draw-to-repayment switch is where most borrowers get hurt. In the draw, you pay interest only. Once repayment starts, the line closes and the payment includes principal. Experian notes that the line closes and you typically have 20 years to repay. It also warns that some lines require a balloon payment instead.
The step-up is real, and it grows with your balance. Because pricing floats through both phases in this network, the payment can also move with the market. Nothing locks.
Model both phases before you sign. Ask what the payment looks like at the full draw, and what the property’s rent can carry once principal is added. If the property cannot support the repayment phase, plan to pay the balance down during the draw or refinance before the switch.
Practitioner pattern: borrowers who draw the minimum, treat the interest-only phase as free cash flow, and then reach the repayment phase with a full balance are the ones who struggle. The interest-only draw is a loan, not a discount.
Where the General Rule Breaks
Title and vesting. The line must be held by you individually or by an inter vivos revocable living trust. LLCs, corporations, partnerships, and irrevocable, blind, or land trusts cannot hold title. If the property sits in an LLC, you need a vesting change or a DSCR cash-out refinance instead. Our complete DSCR loans guide covers how entity-owned rentals are financed.
Property type. Eligible properties include single-family homes, 2-4 units (a 640 minimum applies on the 3/17 structure), PUDs, townhomes, and condominiums, including non-warrantable ones. Modular factory-built homes are eligible on the 3/17 only. Manufactured homes, co-ops, condotels, log homes, commercial, mixed-use, and agricultural-zoned property are not offered.
Derogatory credit. A bankruptcy needs 4 years of seasoning from discharge or dismissal. Foreclosure history splits by structure on primary residences and second homes. One structure seasons a foreclosure at 7 years and a deed-in-lieu, pre-foreclosure, or short sale at 4. The other declines that history entirely, regardless of age. Investment files follow the 7-and-4-year path.
Low scores. Profiles below 640 are limited to single-family residences with a clean 12-month housing history on the 3/17. Second homes floor at 640 and investment at 700, so this restriction only reaches primary residences.
Minimum draws. After closing, each additional draw is at least $1,000, or $4,000 in Texas, as stated by the 3/17 structure.
Texas. The 12-day waiting period, the one-lien-at-a-time rule, and 12-month seasoning bind primary residences only. Texas second homes and investment properties are eligible as non-homestead transactions, and Texas properties are limited to 10 acres.
Listed properties. A property listed for sale, or listed within the past 60 days, is ineligible in Indiana, North Carolina, Pennsylvania, Tennessee, Texas, and Washington. New Mexico and Ohio apply a CLTV cap that depends on the credit profile.
Availability. These HELOC programs run only in Lendmire’s 16 full-service states, which is narrower than its 41-market DSCR footprint.
Why Investment HELOCs Are Hard to Find
Large retail lenders mostly steer away from investment-property lines. NerdWallet says they are harder to get because lenders consider default risk to be higher. On Lendmire’s network, an investment line needs a 700 profile and tops out at 70% CLTV. The exact numbers vary by lender and program and follow a full review of property, leverage, and credit.
That scarcity is the reason to compare options with a broker before assuming a line is off the table.
HELOC or DSCR Cash-Out?
If you want predictable terms, a rental-qualified loan may fit better. A DSCR loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines. It can be held in an LLC, and select programs offer extended terms and interest-only periods. A HELOC leaves your first mortgage in place. A cash-out refinance replaces it.
The two serve different needs. A HELOC works when your existing loan is worth keeping and you want revolving access. A cash-out suits an investor who is already restructuring or whose property sits in an entity. Clearing a 1.00 coverage ratio is also not the same as positive cash flow, since repairs, vacancy, and management sit outside the calculation.
If your concern is keeping the original loan intact, see Lendmire’s piece Best Investment Property HELOC Program Without Restarting Your Mortgage Term. If you want to compare a longer interest-only runway, Lendmire’s article on the best DSCR HELOC program with a 5-Year interest-only draw and 25-Year repayment goes deeper.
Before You Apply
- Pull your own credit and check tradelines against the structure you want.
- Confirm how the property is titled.
- Total every financed property you own and the lines you already hold.
- Decide how much you actually need, because at least 75% is drawn at closing.
- Check the property type against the not-offered list.
- Plan for the repayment payment, not just the draw payment.
Lenders must give you a HELOC brochure at application, according to the CFPB. Read it. It notes that HELOC rates are typically variable and that a lender may reduce the line if the home’s value falls. Tax treatment varies; consult a qualified professional.
Frequently Asked Questions
Is a twenty-year repayment term standard?
It is common in the broader market but not a fixed rule. Experian reports that a 20-year repayment typically follows a five-to-10-year draw, and terms vary by lender. On Lendmire’s network, the repayment phases run 17 years or 25 years.
Can I get a twenty-year total term on an investment property?
No. Investment lines run only the 5-year draw and 25-year repayment, for a 30-year total life. The 3/17 structure, which totals twenty years, is offered on primary residences and second homes.
Can I borrow during repayment?
No. When repayment begins, the line closes to new draws. Before that, each additional draw after closing is at least $1,000, or $4,000 in Texas, on the structure that states a minimum.
Does the rate ever become fixed?
Not on this network. Pricing floats across both the draw and repayment periods on both structures. Plan for the payment to move, and test your budget with that in mind.
Can my LLC hold the line?
No. Title must be held by you or a revocable living trust. A property already in an LLC needs a vesting change, or a DSCR cash-out refinance instead, subject to program terms.
About Lendmire
As a mortgage broker (NMLS# 2371349), Lendmire helps homeowners and real estate investors in its 16 full-service states open home equity lines of credit arranged through wholesale lenders. Lendmire is never the lender; line amounts, ceilings and terms are set by the lender under its guidelines. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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Informational only. Not a Loan Estimate, approval, or commitment to lend. Program availability and eligibility are subject to lender guidelines, credit approval, property review, and underwriting.
References
1. Experian
2. NerdWallet
3. Experian
This article is part of Lendmire’s HELOC & home equity loan program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Best Investment Property HELOC Program to Buy Rental Property · Best Investment Property HELOC Program for a Landlord With Three Doors · Best HELOC Program as a Backup Emergency Fund
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
- Mortgage Loan Originator · NMLS# 1129696 · Verify on NMLS Consumer Access
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- North Carolina Insurance Producer · License# 19053198 · Property, Casualty, Life, Health · Verify on NAIC SBS
- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
Disclosures. The information presented in this article is general market commentary, not financial, legal, or tax advice. Lendmire is a mortgage brokerage (NMLS# 2371349) — not a direct lender or depository institution — and loan placement is subject to lender underwriting. Nothing in this content represents a commitment to lend. Loan terms, pricing, and program availability vary based on borrower qualifications, property characteristics, and state of subject property, and are subject to change at any time. Lendmire complies with Equal Housing Opportunity requirements. Consumer access: nmlsconsumeraccess.org.