The Quick Read: It depends on the property’s state and the lender: yes, a handful of lenders write a HELOC secured by a rental, but it is a narrow, stricter product, and through Lendmire’s wholesale network it is offered only on investment properties in 16 states, at up to 70% CLTV and a $500,000 line.
- Where: The network’s investment line is available in AL, CA, CO, FL, GA, IN, MI, MT, NM, NC, OH, PA, TN, TX, VA, and WA. Everywhere else, the route is a different product.
- How much: An investment property line tops out at 70% CLTV (combined loan-to-value, meaning every loan against the property added together) and $500,000, subject to lender guidelines.
- Who: The minimum credit score is 700. Title must sit in your own name or a revocable living trust, not an LLC.
- Which state counts: The state where the rental sits decides eligibility, not the state where you live.
- If it doesn’t fit: A cash-out refinance or a DSCR cash-out loan often does the same job, and it is not limited to those 16 states.
Which State Decides Whether You Can Get One?
The property’s state decides. Where you live matters far less. A lender that writes a line against a rental in Florida cares about Florida law, Florida title practice, and whether it is set up to lend there.
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.
That rule matters most for investors who own across state lines. You might live in Ohio and own a duplex in Georgia. The Georgia duplex is what gets reviewed.
No federal rule bans a HELOC on a rental. Availability comes from each lender’s own policy and the places it is set up to lend. NerdWallet says the same: the pool of lenders is smaller than for a primary-home line, not every lender offers the product, and some restrict by location or by whether the home is rented all year.
That also explains why no official state-by-state list exists. A published list would be one lender’s footprint, not a rule of the state.
Where Is It Offered? The State-by-State View
Across Lendmire’s wholesale network, an investment property line is available in 16 states. The brokerage arranges these lines through select wholesale partners and is never the lender. Every figure below is subject to lender guidelines and full file review.
| State | Offered on investment property? | What to know |
|---|---|---|
| AL, CA, CO, FL, GA, MT, VA | Yes | Standard investment terms |
| MI | Yes | Smaller lines allowed, from $10,000 |
| IN, NC, PA, TN, WA | Yes | Not eligible if the property is recently listed for sale; the lookback window varies by lender |
| TX | Yes, as non-homestead | Same listing rule; 10-acre limit |
| NM, OH | Yes | CLTV cap depends on your credit profile |
| All other states | Not offered | Use a cash-out or DSCR route |
The standard line size runs from $25,000 up to the $500,000 investment ceiling. Michigan is the exception on the low end.
A few notes on reading that table. The listing rule means a rental you have put on the market, or took off the market within the past 60 days, cannot secure a line in those six states. Texas adds an acreage limit, so a rental on a larger parcel is out.
For New Mexico and Ohio, the cap moves with your credit profile. Your own number may land below the 70% ceiling.
Lendmire’s DSCR investor loans cover a wider area, 41 markets including Washington, D.C. A state that is not on this HELOC list is not a dead end. It only means the equity-line product is the wrong tool there.
Why Availability Varies From Place to Place
Three layers decide it: the lender’s footprint, state law, and how the property is classified. Footprint is the biggest layer. A lender has to be licensed, set up for title work, and comfortable with a state’s foreclosure process before it lends there. Many lenders simply don’t build that for a product with limited volume.
State law is the second layer. Texas is the standard example. A Texas primary residence is a homestead, and extra rules apply to it: a waiting period, a one-lien-at-a-time rule, and an 80% combined loan-to-value cap. Those rules bind primary residences only. A Texas rental is treated as a non-homestead transaction, which is why it can be eligible while the same borrower’s own house follows stricter steps.
Classification is the third layer. Lenders sort properties by occupancy: primary home, second home, or investment property. The network’s ceilings are tiered by that label. On a primary residence or second home, the ceiling reaches 90% CLTV, and only at a 720 or better credit profile. On an investment property, the ceiling is 70% CLTV with no tier above it.
Because of that gap, the label on your property changes your leverage by a lot. Describing the property accurately is not optional. Misstating occupancy on an application puts the loan and you at risk.
What an Investment Line Looks Like Here
The structure is a standalone line in first or second lien position. On an investment property it runs a 5-year draw period, then a 25-year fully amortizing repayment period. A draw period is the stretch when you can borrow and pay interest only. The repayment period is when you pay the balance down.
The CFPB’s HELOC explainer describes the same basic design: a revolving line with a draw period followed by repayment. Pricing on this line floats through both periods and never converts to a fixed term, so your payment moves with the balance and the market.
Here are the other parameters that shape a file on an investment property:
- Leverage: 70% CLTV at credit of 720 or 700. Above 700, extra credit buys no extra leverage.
- Credit floor: 700 on an investment property, with no tier beneath it.
- Line size: up to $500,000. Lines above that size are for primary residences only.
- Debt-to-income: 50% maximum. The lender reviews your file on the interest-only payment calculated on the maximum draw, not on what you actually borrow.
- Draw at closing: at least 75% of the line is drawn when the loan funds.
- Valuation: because the line stays at or below $500,000, it normally uses an automated valuation instead of a traditional appraisal. You can still ask for a full appraisal.
Two of these deserve a second look. The 75% draw at closing means you cannot open a large line and leave it untouched as a cushion. And an automated valuation will not capture rehab value you haven’t created yet, so the line sizes to what the property is worth today.
Market-wide, NerdWallet reports maximum LTVs up to 80% on rental HELOCs, though many lenders set theirs below 70%. It also reports reserve expectations of six months or more and DTI limits between 40% and 50%. The network’s own ceiling on an investment property is 70% CLTV, and nothing above that is available through it.
Who Gets Turned Away: Title, Property Type, Portfolio Size
Three things knock out more files than credit does.
Title. The line requires title held by you as an individual or by your revocable living trust. LLCs, corporations, partnerships, and irrevocable, blind, or land trusts cannot hold title on these files. That is the sharpest structural difference from a DSCR loan, which can often close in an LLC, subject to program terms. If your rental is already deeded to an LLC, you either change the vesting or use a DSCR cash-out instead.
Property type. Eligible properties include single-family homes, 2-4 unit buildings, PUDs, townhomes, and condominiums, including non-warrantable condos. Manufactured homes, co-ops, condotels, log homes, commercial, mixed-use, and agriculturally zoned properties are not offered.
Portfolio size. A borrower is limited to three lines. An owner with more than 15 financed properties is not eligible at all. Large landlords hit that wall early and usually end up in DSCR territory.
Credit history rules also apply. A bankruptcy needs 4 years of seasoning from discharge or dismissal. On an investment file, a foreclosure needs 7 years, and a deed-in-lieu, pre-foreclosure, or short sale needs 4.
Run Your Portfolio One Property at a Time
Say you live in Ohio and own three rentals: a duplex in Ohio, a single-family home in Florida, and a condo in Arizona. Don’t ask whether you can get a HELOC. Ask it three times.
1. Check the state. Ohio and Florida are on the list. Arizona is not, so the condo needs a different product.
2. Check the title. If the Florida house sits in an LLC, it fails the title test until the vesting changes.
3. Check the type. A duplex and a single-family home both fit. A manufactured home would not.
4. Check the listing. Ohio and Florida carry no listing-window rule, though other states do.
5. Check the leverage. The Ohio duplex’s cap depends on your credit profile. The Florida house follows the standard investment tier.
6. Check the count. Three lines is the ceiling, so decide which properties deserve one.
A line on the Ohio duplex puts the duplex at risk. A line on your own home to fund a rental puts your home at risk, a point the CFPB’s HELOC booklet makes plainly. The booklet also notes that some line terms prohibit renting out the home and that selling the property generally means paying the line off in full. That payoff-on-sale rule matters if you flip or trade properties.
Brokers who see files across many lenders notice a pattern here. The files that stall are rarely about credit. They stall on title in an LLC, a listing that went up and came down last month, or a rental sitting on more acreage than the program allows. Checking those three before applying saves a lot of wasted effort.
Lendmire’s piece How to Qualify for an Investment Property HELOC by State and Where It Is Offered goes deeper on the qualification side.
Questions to Ask Before You Apply
A branch footprint is not a lending footprint. A bank with offices in your state may not lend against rentals there, and an online lender with no branches may. Ask these directly:
- Do you lend against a non-owner-occupied property in the state where my rental sits?
- Do you take first position, second position, or both?
- Will you lend if the property is rented to a long-term tenant? What about a short-term rental?
- Do you accept title in a revocable living trust? Do you accept an LLC?
- Do you cap the number of units or the number of lines per borrower?
- Do you use an automated valuation or a full appraisal?
- How does the payment move after the draw period ends?
Small banks and credit unions near the property are worth a call, since they sometimes write what larger lenders won’t. Expect to shop more widely than you would for a primary-home line, because NerdWallet notes that fewer lenders offer it and cost usually runs higher.
If Your State or Property Doesn’t Fit
Several other products can reach the same equity. Each is secured by something different and judged on something different.
| Option | Secured by | Judged mainly on |
|---|---|---|
| HELOC on the rental | The rental | Your credit, DTI, equity |
| HELOC on your home | Your home | Your credit, DTI, equity |
| Cash-out refinance | The rental | Your credit, DTI, equity |
| DSCR cash-out loan | The rental | Rent versus the property’s payment |
The first three lean on your personal debt-to-income ratio. A DSCR loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines. For a property you mostly rent out, NerdWallet lists a DSCR second mortgage and a cash-out refinance as the likelier fits.
Which one works depends on your DTI, how many properties you hold, and how much equity you need. A variable payment can also strain thin cash flow. A line that moves with the balance is a better match for a short bridge than for a permanent down-payment fund.
The DSCR cash-out path runs on different numbers. Across the network, a cash-out refinance on a standard rental tops out around 75% LTV, with about 6 months of seasoning as the common expectation. On short-term-rental collateral, cash-out is 70% LTV, with a 640 or better score and about 12 months of hosting history. Loan sizes run up to $3,000,000 on standard programs (smaller balances available through select lenders). Terms vary by lender guidelines, property type, leverage, credit profile, and full file review.
On credit, a 620 floor exists in parts of the network, most programs want around 660, and 700 or better unlocks the strongest leverage. A 1.00 coverage ratio is where many select programs start. A separate select-lender path goes below 1.00, with leverage and terms adjusted.
Reserves vary by lender, leverage, loan size, and transaction type. About six months of PITIA is common. PITIA means principal, interest, taxes, insurance, and any association dues.
One caution applies to every DSCR file. The ratio compares rent to PITIA only. A property that clears 1.00 is not necessarily producing positive cash flow, because repairs, vacancy, management, utilities, and capital expenses sit outside the calculation.
The complete DSCR loans guide covers the full program picture. If you’re comparing both product types in one state, Lendmire’s explainer How to Qualify for a DSCR HELOC by State and Where It Is Offered lines them up side by side.
Key Terms Defined
HELOC: A home equity line of credit, a revolving line you can borrow from, repay, and borrow again during a set draw period.
CLTV: Combined loan-to-value, the total of all loans against a property divided by its value.
Draw period: The stretch when you can pull money from the line, usually paying interest only.
Repayment period: The stretch after the draw period when you pay the balance down over a fixed schedule.
Automated valuation: A computer-generated estimate of property value used instead of a traditional appraisal.
Lien position: Whether your loan sits first or second in line to be repaid if the property is sold or foreclosed.
DSCR: Debt service coverage ratio, the property’s rent divided by its monthly PITIA.
Frequently Asked Questions
Can I get one if I live in a different state from the rental?
Yes. The state of the rental is what counts, not your home state. A lender needs to be set up to lend in the state where the property sits. Your residence matters mainly for credit and income review.
Is an investment property HELOC available in every state?
No. Through Lendmire’s wholesale network, it is available in 16 states: AL, CA, CO, FL, GA, IN, MI, MT, NM, NC, OH, PA, TN, TX, VA, and WA. Lenders have different footprints, so a state outside that list may still have a local bank or credit union that will write one.
Why does Texas come up so often?
Texas protects primary residences as homesteads, which adds waiting periods and a combined loan-to-value cap of 80% on a primary home. A Texas rental is a non-homestead transaction and follows the investment tier, subject to the listing rule and the 10-acre limit.
Can an LLC get one?
Not through this network. Title must be held by you personally or by your revocable living trust, so LLCs, corporations, and partnerships cannot hold it. If the property is in an LLC, you can change the vesting or look at a DSCR cash-out, which can often be done in an entity, subject to program terms.
What if my state isn’t offered?
Compare a cash-out refinance, a DSCR cash-out loan, or a line on your own home. A DSCR cash-out reviews the property’s rent instead of your personal debt ratio. Each option carries different risk, so match the product to how much equity you need.
Next Step
If you are considering a home equity line and want to see how the numbers work, Lendmire can help you compare HELOC options based on the property, the equity available, credit profile, combined leverage, and your goals.
The 16-state HELOC footprint is a good reminder that equity is local, so a portfolio spread across several states will usually need more than one financing tool.
About Lendmire
Lendmire (NMLS# 2371349) is a mortgage brokerage serving homeowners and real estate investors in its 16 full-service states. Home equity lines of credit are arranged through wholesale lending channels; Lendmire brokers the line and the lender underwrites each application under its occupancy-based guidelines. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
Get Started
Ready to find the right loan for you?
See your offer in seconds. No credit pull, no obligation.
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. NerdWallet
3. CFPB: HELOC Consumer Booklet (PDF)
4. NerdWallet: HELOC on an Investment Property, Alternatives
This article is part of Lendmire’s investment property HELOC program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: How to Qualify for an Investment Property HELOC Before Your Return Is Filed · How an Investment Property HELOC Works When Big Banks Decline · How an Investment Property HELOC Works on a Home Held in an Irrevocable Trust
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
- Mortgage Loan Originator · NMLS# 1129696 · Verify on NMLS Consumer Access
- North Carolina Real Estate Broker · License# 343312 · Verify on NCREC
- North Carolina Insurance Producer · License# 19053198 · Property, Casualty, Life, Health · Verify on NAIC SBS
- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
Disclosure information. Lendmire is a state-licensed mortgage brokerage under NMLS# 2371349. Lendmire is not a depository institution, direct lender, or financial advisor — all loans referenced are placed through wholesale lender partners and are subject to each lender's underwriting standards. This article is provided for general informational purposes and is not a commitment to lend, nor does it constitute financial, legal, or tax advice. Loan programs, terms, rates, and qualification standards change without notice and depend on borrower profile, property type, and the state in which the subject property is located. Equal Housing Opportunity provider. NMLS Consumer Access: nmlsconsumeraccess.org.