Investment Property HELOC Requirements When Your Credit Score Is Below 670

The Quick Read: A score under 670 does not qualify for an equity line secured by a rental on Lendmire’s network, because the investment-property line has a hard 700 minimum with no lower tier. Investors in the 620 to 669 range usually get further with a DSCR cash-out refinance, which qualifies primarily on property-level rental income covering the payment, subject to lender guidelines.

• An investment-property line requires a 700 minimum score, tops out at 70% CLTV, and runs $25,000 to $500,000.
• A score of 720 reaches the same 70% ceiling as 700, so higher credit buys eligibility, not extra leverage.
• Title must be held by an individual or a revocable living trust. An LLC cannot hold it.
• A DSCR cash-out refinance is the usual fit for a sub-670 borrower: roughly a 620 floor in parts of the network, most programs near 660, and up to about 75% LTV on standard rentals.

What an Investment Property HELOC Actually Is

A home equity line of credit is revolving credit secured by property. You draw against it during a set period, then repay. The CFPB describes it as open-end credit with a draw period followed by a repayment period.

On a rental, the line is either a second lien behind your existing mortgage or a first lien on a paid-off property. On Lendmire’s network, an investment line runs a 5-year interest-only draw followed by a 25-year repayment, and the price floats throughout.

The key point is who gets tested. A HELOC tests the borrower: credit, debt load, equity. The rent matters far less. That is why a low score stops the file early.

Why 670 Is Not the Real Number

The 670 figure is the bottom of the “good” band in myFICO’s score ranges, where fair runs 580 to 669. It is a consumer label, not a lender cutoff.

The cutoff for investment lines sits higher. NerdWallet reports that a HELOC on an investment property is harder to get than one on a primary home, because lenders see higher default risk. Lendmire’s network figure is 700, and it is a hard floor.

So a 669 borrower is not one point short of a 670 line. That borrower is 31 points short of the investment-line floor.

How Underwriting Treats a Sub-670 File, Step by Step

1. Collateral and title. The property must be vested in you personally or in a revocable living trust. LLCs, corporations, partnerships, and irrevocable or land trusts cannot hold title.

2. Credit pull. The network uses a single-bureau score keyed to the primary wage earner. The report can be no more than 90 days old at closing, and rescores are not available. A score under 700 ends an investment-line file here.

3. Equity and CLTV. Combined loan-to-value is your first mortgage plus the proposed line, divided by value. On an investment property the ceiling is 70% CLTV. Thin equity means a small line or none.

4. Debt-to-income. DTI tops out at 50%, and it is calculated on the interest-only payment at the maximum draw.

5. Valuation. Because investment lines cap at $500,000, they usually run on automated valuation rather than a full appraisal.

6. Property type. Single-family, 2-4 unit, PUD, townhome, and condo (including non-warrantable) are eligible. Manufactured homes, co-ops, condotels, log homes, and mixed-use are not.

Notice that step 2 is the gate. Nothing in the later steps can compensate for a score below the floor.

The Structures That Exist for Sub-670 Borrowers

DSCR cash-out refinance. This is the route built for the file this article describes. It qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. Most programs top out around 75% LTV on standard rentals, and short-term-rental collateral is capped at 70%. About 6 months of seasoning is the common expectation. Credit still matters: a 620 floor exists in parts of the network, most programs want about 660, and 700 or better unlocks the strongest leverage tiers. Loan sizes run up to $3,000,000 on standard programs (smaller balances available through select lenders), well above the $500,000 cap on an investment line. Coverage of 1.00 is where select programs start, and stronger ratios earn better pricing and leverage. Separately, a select-lender path takes coverage below 1.00 with leverage and terms adjusted.

HELOC on your own home. On Lendmire’s network, a primary-residence line starts at a 600 minimum, with DTI limited to 45% for scores from 600 to 679. Here is the catch. You are putting your home behind a rental. The CFPB’s HELOC brochure warns that a lender can reduce a line if the property value drops, and that missed payments put the home at risk.

Equity lines on primary homes are also limited by availability. They are offered only in Lendmire’s 16 full-service states, which is narrower than the 41-market DSCR footprint.

A Worked Comparison: Same Investor, Two Products

Picture an investor with a score in the mid-600s who owns a well-rented duplex with solid equity. The line fails on step 2, so the equity never gets a chance to matter.

Now run the same duplex through a DSCR cash-out. The lender looks at rent against the full payment. If coverage clears roughly 1.2x and the score meets the program’s floor, the file can move forward at up to about 75% LTV, with reserves commonly around 6 months of PITIA (varying by lender, leverage, and loan size).

Keep one trap in mind. A DSCR cash-out replaces the whole first mortgage, while a line leaves it in place. An investor holding a mortgage they like may prefer a line. An investor who needs one lump sum, or who cannot reach 700, usually ends up with the cash-out. And clearing 1.00 is not the same as positive cash flow. Repairs, vacancy, management, and capex sit outside the DSCR calculation.

Where the General Rule Breaks

• LLC-titled rentals. An LLC cannot hold title on the line. A property already in an LLC needs a vesting change or a DSCR cash-out instead.
• Needing more than $500,000. The investment line cap rules it out. A DSCR cash-out is the route.
• Strong credit, thin equity. At 720, the ceiling is still 70% CLTV. Credit does not buy extra leverage.
• Ineligible property types. Manufactured homes, co-ops, condotels, log homes, and mixed-use properties are not offered on the line. Manufactured homes, log homes, and barndominiums are also not offered on the DSCR programs.
• Large portfolios. A borrower owning more than 15 financed properties is not eligible for the line, and exposure is capped at three lines.
• Derogatory history. A bankruptcy needs 4 years of seasoning from discharge or dismissal. Investment files follow a 7-year path for foreclosure and 4 years for a deed-in-lieu, pre-foreclosure, or short sale.
• Convert-later strategies. Some investors open a line while the home is still their primary residence, then convert it to a rental. Occupancy and use covenants vary, so read the loan agreement and confirm with the lender before relying on this.

What Compensating Factors Can and Cannot Fix

Strong rent coverage, ample reserves, and low leverage help a DSCR file. They do not lower the 700 floor on an investment line. That floor is a program rule, not a scoring judgment.

A larger down payment or more equity can lower the payment and lift the coverage ratio. It never erases credit floors, leverage caps, reserve rules, or property eligibility. The strongest files clear both tests: enough equity and enough rental coverage.

A Practical Plan for the Sub-670 Investor

1. Decide whether you need the line at all. If the goal is a lump sum for a purchase or rehab, a cash-out may do the same job now.

2. Check title. If an LLC holds the property, the line is off the table regardless of score.

3. Pull your own report. Look for utilization and any errors worth disputing. Lenders pull their own report, and timing varies by file and lender.

4. Price the wait. Rebuilding to 700 has a real cost if a good deal is on the table now.

5. Model coverage after borrowing. A line adds a payment on top of the first mortgage. Recheck rent against the full obligation.

6. Mind stacked liens. A second lien shrinks remaining equity, which matters if you plan a DSCR cash-out later.

For a full view of how the rent-based alternative works, see the complete DSCR loans guide.

Key Terms Defined

CLTV: Combined loan-to-value, meaning all loans against the property divided by its value.

DSCR: Debt service coverage ratio, which compares monthly rent to the full monthly payment of principal, interest, taxes, insurance, and any HOA dues.

Draw period: The stretch when you can borrow from the line, usually with interest-only payments.

Seasoning: The time you must hold a property or loan before a cash-out refinance is allowed.

Vesting: The legal form in which title to the property is held.

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. Lendmire is a broker arranging financing through select lenders in its wholesale network, and every program is subject to lender guidelines and is not a commitment to lend.

About Lendmire

Lendmire is a mortgage brokerage (NMLS# 2371349) arranging home equity lines of credit — primary-residence, second-home and investment-property lines — through a wholesale lending network in its 16 full-service states. Eligibility is determined by the lender on each file. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.

Investors who want the broader program framework can review how DSCR loans work.

References

1. The CFPB

2. myFICO – What is a FICO Score

3. NerdWallet – HELOC on an investment property

4. CFPB HELOC booklet (print brochure)