The Quick Read: Not right away: a rental listed for sale in the prior 2 months is ineligible, so the amount is zero until that window clears, even if you withdrew the listing, and after that combined loan-to-value sets the size, up to 70% on a second lien at a 720 credit score, subject to underwriting. The valuation and the line limits can shrink the number further. The exact numbers vary by lender and program and follow a full review of property, leverage, and credit.
- Listing gate: a property listed for sale in the prior 2 months is outside the program, and a withdrawn listing still counts.
- Second-lien ceiling: up to 70% combined loan-to-value at a 720 score or better, on lines from $50,000 to $500,000.
- First-lien ceiling: up to 75% at 740 or better on a rental with no mortgage, with a 65% ceiling on lines above $500,000.
- Rent test: a minimum coverage of 1.10x, run on a stress payment over the whole credit limit.
- Footprint: the program is offered in 15 of Lendmire’s 16 licensed states, every licensed state except Tennessee, and each file is underwritten individually.
What Does “Recently Listed” Do to Your Borrowing Amount?
It takes the amount to zero for the length of the look-back. A look-back is a screen that checks the property’s history over a set window before today. The screen runs on the listing, not on whether the listing is still live.
Across the wholesale network where Lendmire places these lines, a property listed for sale in the prior 2 months is not eligible. Pulling the listing off the market does not erase it. A listing that ended eight weeks ago still sits inside the window.
Programs write their own rules here. Nothing universal sets a waiting period after delisting, so one lender’s screen can differ from another’s.
Delisting does not fix the problem on the same day. If you plan to list, fail to sell, and then borrow against the rental, build the wait into your timeline.
Which Situation Are You In?
Your listing status decides your next step. This table shows where each status lands on this program.
| Your status | Eligible for the line? | Practical next step |
|---|---|---|
| Never listed | Yes, if other tests pass | Move to sizing |
| Listed right now | No | Sell, or withdraw and wait out the window |
| Under contract | No | Finish the sale; there is no collateral to lend against |
| Withdrawn or expired, inside 2 months | No | Wait for the look-back to clear |
| Listing ended more than 2 months ago | Yes, if other tests pass | Move to sizing |
A property under contract is a special case. Once a sale is in motion, the home is going to someone else, and the lender has nothing to hold as collateral.
How Is the Maximum Line Calculated?
The maximum line is a percentage of the property’s value, minus what you still owe on the first mortgage, capped at the program’s line limit. The cap is a combined loan-to-value, or CLTV: the first-mortgage balance plus the new line, divided by the property’s value.
Here is the logic on a second lien. Say the program allows 70% CLTV. If your first mortgage already uses 55% of the value, about 15% of value is left for the line. A higher value, or a lower first-mortgage balance, widens that room.
Thin equity can break the deal on its own. The room has to be big enough to clear the $50,000 minimum line, and the valuation has to support it. A lower valuation than you expected shrinks the line directly.
Here is how the leverage tiers stack up.
| Lien position | Credit score | Maximum leverage | Line size |
|---|---|---|---|
| Second lien, behind your first mortgage | 720 or better | 70% CLTV | $50,000 to $500,000 |
| First lien, rental with no mortgage | 740 or better | 75% LTV | Up to $500,000 |
| First lien, rental with no mortgage | 700 to 739 | 70% LTV | Up to $500,000 |
| First lien, rental with no mortgage | 720 or better | 65% LTV | Above $500,000, to $1,000,000 |
All of these are ceilings, not offers, and they apply through select programs, subject to underwriting. A declining-market flag on the property can lower the ceiling by 5 points.
Lien position matters. A borrower who keeps a first mortgage can only take a second lien, which carries the 720 floor. A first lien exists only on a rental that has no mortgage at all.
Does Rent Cap the Line Too?
Rent does not set the dollar amount. It decides whether you pass at all, and then the combined loan-to-value and line limits set the amount. Think of rent as a gate and equity as the size of the door.
The program calls for a minimum DSCR of 1.10x. DSCR, or debt service coverage ratio, is gross monthly rent divided by the monthly payment the lender tests. Here the tested payment is a fully amortizing payment on the entire credit limit, run at the start rate plus 2 percentage points. Lenders call that a stress payment, because it is higher than what you will pay during the interest-only draw period. Final terms depend on the lender’s guidelines, the property type, and the borrower’s complete credit picture.
The stress payment covers principal and interest on the full line. Taxes and insurance are not part of it. On a second lien, confirm on your file how the lender treats the first-mortgage payment, since the lender’s own coverage calculation governs.
Rent is the lesser of the appraisal’s market rent and the lease, unless three months of receipts support a lease above market. A lease must be in place. A two-to-four-unit building may have at most one vacant unit.
This is what qualification on the property’s income looks like. The line qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. You do not need tax returns, W-2s, or a personal income calculation. The credit report, the lease, and the valuation are all documented.
Bigger lines mean bigger stress payments, because the test runs on the entire limit and not just the amount you draw. A line sized to the maximum equity can fail coverage even when a smaller line would pass. Lowering the requested limit is one way to bring the payment down until the rent clears the test.
What Property and Valuation Rules Shape the Number?
The valuation path and the property type both narrow the amount. Check them before you plan around a figure.
Lines up to $400,000 use an automated valuation with a confidence score of 85 or better, paired with a property inspection report. A full interior appraisal is the alternative. Lines above $400,000 require a full interior appraisal on the standard form for the property type. Appraisal waivers are not accepted.
Eligible properties include single-family homes, planned unit developments, townhomes, two-to-four-unit buildings, and condominiums, plus lots up to 10 acres. Several property types are outside this program, including:
- Rural-designated properties
- Row homes
- Condotels
- Commercial or agricultural property
- Leaseholds
- Land trusts
- Mixed-use properties
- Properties with a solar lien
The property also needs to be a non-owner-occupied rental. This line is never offered on your own home. The line cannot be closed together with a purchase either, so it cannot fund the purchase it is attached to.
Seasoning is the waiting period between two events, and this program counts two of them. A rental bought or refinanced inside the last 6 months is not eligible (that clock runs from the last note date to the new note date), and the owner must have held title for 6 months (settlement date to note date).
A title holder who is not a borrower signs a non-borrowing owner acknowledgment.
What Credit and Borrower Rules Apply?
The credit floor is 720 on a second lien and 700 on a first lien, taken from the lender’s own credit report. You also need no 30-day mortgage late in the last 12 months. The program wants 48 months since a bankruptcy, foreclosure, short sale, or deed in lieu.
There are no reserve requirements and no cash to close required. Exposure is capped at 5 loans or $2,500,000 per borrower with the program. Borrowers can be U.S. citizens, permanent residents, or non-permanent residents with a Social Security number. Foreign nationals and ITIN borrowers are not eligible.
For the full picture of how these loans fit together, see Lendmire’s complete DSCR loans guide.
How Does the Line Work Once You Have It?
You draw in two phases. The program carries a 5-year interest-only draw period on the drawn balance. A 25-year fully amortizing repayment period follows, and the maturity is 30 years. The rate is variable.
At least 80% of the line is drawn at closing, and the closing draw is never less than $50,000. On the smallest lines, that means the whole line is drawn at closing. Later draws are at least $5,000 each.
The structure is a standard feature of home equity lines. The CFPB’s HELOC explainer describes an open-end line you can borrow against repeatedly, with a draw period followed by a repayment period. This program’s own terms are the ones listed above.
Because most of the line is drawn at the start, you are not holding a large pool of unused credit. Plan for the interest cost of the drawn balance from day one. An unused part of a line is also not committed cash you can count on, since later draws depend on the line staying in good standing.
What Happens If You Sell While Holding the Line?
The line gets paid off. The CFPB’s HELOC booklet says that when you sell the home you are generally required to pay off the HELOC in full. Both liens are paid from sale proceeds at closing.
With a line at 70% combined, selling costs come out of the remaining 30% margin. That margin shrinks if the sale price comes in below your valuation. Run your numbers against a lower price before you commit to a plan that depends on selling.
This is why borrowing against a rental you have just tried to sell is a tight fit. The listing screen blocks the line on the front end. A sale pays it off on the back end.
What If You Need Cash While You Wait?
A few paths exist while the look-back runs. Each has tradeoffs.
A DSCR cash-out refinance replaces the first mortgage rather than adding a second lien. Most wholesale programs expect the property to be off the market before funding, and some add their own look-back. Cash-out programs often accept a market-rent opinion in place of a lease, which can help a vacant or newly delisted unit. Confirm the program’s listing rule before you assume it is looser.
A line on a different rental in your portfolio can also work. The listing screen applies to the property securing the line, so a rental you have not listed is judged on its own history. The exposure cap of 5 loans or $2,500,000 per borrower still applies across the program.
If you plan to use a line for the down payment on your next purchase, the purchase lender will trace where the money came from. Borrowed funds are a debt and add a tradeline, and a line does not count as reserves. Confirm in advance that the purchase lender accepts borrowed funds.
Key Terms Defined
DSCR (debt service coverage ratio): gross monthly rent divided by the monthly payment the lender tests.
CLTV (combined loan-to-value): the first-mortgage balance plus the new line, divided by the property’s value.
Lien position: your place in line to be repaid from the property; a second lien sits behind the first mortgage, and a first lien has no mortgage ahead of it.
Look-back: a screen that checks the property’s history over a set window, such as a listing in the prior 2 months.
Seasoning: the waiting period between two events, such as buying and borrowing.
Draw period: the stretch when you can borrow from the line; here it is 5 years, with interest-only payments on the drawn balance.
Frequently Asked Questions
Can I borrow anything while my rental is listed for sale?
No. A property listed for sale in the prior 2 months is not eligible, and that includes a property that is still on the market. If you are listed now, sell the property or withdraw it and wait out the window. If you are under contract, finish the sale.
Does withdrawing the listing reset the clock?
Withdrawing does not make the listing disappear, and the screen is a look-back that counts a withdrawn or expired listing the same as a live one. A listing that ended inside the 2-month window still blocks the line, and a property whose listing ended more than 2 months ago can qualify if it passes the other tests. A new listing would put the property inside a fresh window.
How do I figure out the most I could borrow?
Multiply the value by the CLTV ceiling, subtract what you owe on the first mortgage, and apply the line limit. On a second lien the ceiling is up to 70% at a 720 score or better, on lines up to $500,000. The rent must also pass the 1.10x test on the stress payment, and the valuation and your credit tier can lower the result.
What seasoning does the line require?
Two six-month clocks apply: the line is not available on a rental bought or refinanced in the last 6 months (last note date to new note date), and title must have been held for 6 months (settlement date to note date). Both are checked in addition to the listing screen. A rental that clears one clock but not the other is not eligible.
Can my LLC hold title on the property?
Yes, subject to program terms. Vesting in your LLC is allowed on investment property, and the members sign as guarantors. The borrowers on the line need not be the borrowers on the first mortgage.
If You Are Weighing a Line on a Rental
If you are considering a home equity line on a rental property and want to see how the numbers work, Lendmire can help you compare DSCR HELOC options based on the property, the rent, the equity available, credit profile, combined leverage, and your goals. Lendmire is a broker, and the line is placed through a wholesale lender in its network. Program terms change, and every file is underwritten individually, so nothing here is a commitment to lend.
A rental that comes off the market is not borrowable the next day, so the investors who get the most from a line plan the look-back before they ever list.
About Lendmire
Lendmire, NMLS# 2371349, is a mortgage brokerage with consumer lending licenses in 16 states. This DSCR home equity line is offered in 15 of those states, every licensed state except Tennessee. Each line it arranges on rental property is written on a non-owner-occupied one-to-four-unit rental and reviewed individually by the lender under the program’s credit and leverage 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
This article is part of Lendmire’s DSCR HELOC program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Can You Get a DSCR HELOC Before Probate Ends? · DSCR HELOC Requirements on a Home You Plan to List · How a DSCR HELOC Works for Using Home Equity on College Tuition
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
Required disclosures. Lendmire (NMLS# 2371349) operates as a licensed mortgage broker, not a direct lender or depository. The discussion in this article is general in nature and should not be relied upon as financial, legal, or tax advice — every investment scenario is unique and should be reviewed by a qualified professional. Any loan inquiry is subject to lender underwriting, and this article is not a commitment to lend or a guarantee of approval. Mortgage rates, loan terms, and program guidelines vary by borrower, property, and state, and may change without notice. Equal Housing Opportunity. Verify licensure at NMLS Consumer Access.