Top HELOC Providers With a Thirty-Year Interest-Only Structure

The Quick Read: The structure you are searching for usually means a line whose total life is thirty years, with interest-only payments for only the first five of them and a fully amortizing repayment period after that. Which providers write it, and on what terms, depends on your property, credit profile, and the combined leverage you need. Lendmire is a broker, so it matches your file to the programs that fit rather than ranking companies.

• A thirty-year line is draw period plus repayment period, not thirty years of interest-only.
• On investment properties, the structure on our network is a 5-year draw and a 25-year repayment, with a 70% combined loan-to-value ceiling.
• The balance does not shrink during the interest-only years, so the payment steps up when repayment starts.
• The line must sit in your personal name or a revocable living trust, which rules out an LLC.
• Availability is limited to 16 states, narrower than DSCR lending.

What “Thirty-Year Interest-Only” Actually Means

No home equity line that we place stays interest-only for thirty years. The “thirty-year” label describes the whole life of the line, and only the front part is interest-only.

A home equity line of credit (HELOC) is a revolving credit line secured by property. You borrow against it, repay, and borrow again during an initial window called the draw period. After the draw period, a repayment period begins. During repayment you stop borrowing and pay down principal plus interest.

Add a 5-year draw to a 25-year repayment and you get thirty years. That is the structure behind the search phrase. Consumer-finance publishers describe the same pattern. Experian says a draw typically runs five to 10 years, followed by a 20-year repayment, and notes that some lines offer 15- or 20-year draws.

Across our wholesale network, two draw structures exist on primary residences and second homes:

• The 5/25 structure: a 5-year interest-only draw followed by a 25-year fully amortizing repayment.
• The 3/17 structure: a 3-year interest-only draw followed by a 17-year fully amortizing repayment.

Investment property lines run the 5/25 structure only. If you want the longest interest-only runway, the 5/25 is the one to look for. A few states shorten both structures, so the total life can be shorter than the headline.

How the Line Works, Step by Step

Here is the sequence, from application to the last payment.

1. Sizing. The line is sized from your equity. The lender takes the property’s value, applies a maximum combined loan-to-value (CLTV), and subtracts the existing mortgage. CLTV is your first mortgage plus the new line, divided by the property’s value.

2. Opening draw. On the programs we place, at least 75% of the line is drawn at closing. This is not a pure standby line you open and leave untouched.

3. Draw phase. You pay interest only on what you have drawn. NerdWallet explains that interest accrues on the drawn balance, not the full limit. After closing, the minimum for each additional draw is $1,000 on the longer-runway structure, with one state at $4,000.

4. Flat balance. Interest-only means principal stays owed. Nothing you pay in those years reduces what you borrowed.

5. Floating pricing. On both structures, pricing floats through the draw and the repayment period and never converts to a fixed amount.

6. Repayment phase. The line stops accepting draws and payments include principal. The same NerdWallet explainer says payments will likely be substantially higher unless you paid principal down during the draw.

Lenders review your file on the interest-only payment calculated on the maximum draw, not only on what you drew. Your debt-to-income ratio (DTI) is capped at 50%. It is capped at 45% for credit profiles from 600 to 679, and a ratio above 45% requires a 680 minimum.

What the Network Allows by Occupancy

Ceilings depend on how the property is used, and the gaps between occupancies are wide. Every figure below is subject to lender guidelines and full file review.

The 90% ceiling on second homes and primary residences exists only at a 720-or-better credit profile, and only for lines up to $500,000. Lower credit tiers step down. On a primary residence, for example, a 660 score typically tops out at 85% CLTV, and a 620 score at 70%.

The investment row is the one that matters for rental owners. A 700 score gets a 70% CLTV ceiling, and a 720 score does not raise it. Market surveys sometimes report equity lines at much higher combined leverage, but that describes the broader market, not investment lines on this network.

Lines of $25,000 to $750,000 are the working range. A line above $500,000 is primary-residence only. It requires a credit profile of 700 or better (720 on the 5-year-draw structure) and a full appraisal, and it caps at 75% CLTV.

For lines at or below $500,000, valuation is ordinarily automated, with no traditional appraisal. A higher CLTV may call for a second valuation, and you can request a full appraisal in any case.

Where the General Rule Breaks

A line that looks right on paper can fail on a structural point. These are the edge cases that decide files.

Title and vesting. The property must be held by you individually or by a revocable living trust. LLCs, corporations, partnerships, and irrevocable, blind, or land trusts cannot hold title. This is the sharpest difference from a DSCR loan, which can lend to an LLC, subject to lender program eligibility. If your rental already sits in an LLC, you either change the vesting or use a DSCR cash-out instead.

Property type. Single-family homes, 2-4 units, PUDs, townhomes, and condominiums, including non-warrantable ones, are eligible. A 2-4 unit property needs a 640 minimum credit score on the 5-year-draw structure, and that floor applies to primary residences and second homes. An investment line still requires a 700 minimum credit profile. Manufactured homes, co-ops, condotels, log homes, commercial, mixed-use, and agriculturally zoned properties are not offered.

Exposure limits. You can hold at most three lines. Combined exposure caps at $2,000,000 on the 3/17 structure and $750,000 on the 5/25 structure. If you own more than 15 financed properties, you are not eligible.

Credit history. The scoring model is a single-bureau score keyed to the primary wage earner. The report must be no more than 90 days old at closing, and no rescores are allowed. The 5-year-draw structure requires two tradelines seasoned 12 months, or one seasoned 24. A bankruptcy needs four years of seasoning from discharge or dismissal. Foreclosure history splits by structure on primary residences and second homes: one structure seasons a foreclosure at seven years and a deed-in-lieu, pre-foreclosure, or short sale at four, while the other structure declines that history regardless of age.

State rules. A Texas primary residence caps at 80% CLTV, and several states exclude properties listed for sale within the past 60 days. Other states apply credit-dependent CLTV caps. A few shorten the repayment period.

Availability. These lines are offered only in 16 full-service states. That is narrower than Lendmire’s DSCR footprint of 41 markets, including Washington, D.C. A borrower in a state outside the 16 would generally route to a DSCR cash-out or another structure instead.

What Happens When the Interest-Only Period Ends

The draw period ends on a schedule you know from day one. The risk is how much the payment changes on that date.

Here is the pattern. During the draw, the payment covers interest alone. At conversion, the lender amortizes the whole balance over the repayment term, so each payment now includes principal. Experian reports that many borrowers see payments more than double. Because pricing floats, the payment can also move for reasons that have nothing to do with the schedule.

A federal guide to using home equity describes the same trade-off. A draw usually lasts around ten years, and lenders generally expect you to keep a cushion of equity in the home. The Ask CFPB explainer adds that payments in repayment are often significantly higher, and that in some lines the whole balance can come due at once. The network’s structures amortize rather than balloon, but you should confirm that in your own loan terms.

The part investors miss is simple. A rental that carries its payment comfortably at interest-only may not carry the amortizing payment. Test the property against the repayment-phase payment before you borrow, not after.

Clearing a coverage test is also not the same as positive cash flow. Rent coverage compares rent to the housing payment only. Repairs, vacancy, management, utilities, and capital expenses sit outside it.

You have three exits before the draw period ends:

• Pay down principal during the draw, which shrinks the conversion jump.
• Refinance the balance into a different structure.
• Sell the property, which generally requires paying the line off in full.

How Lendmire Finds the Right Provider for Your File

No single provider is the best fit for every borrower. The best program for your situation depends on property type, credit profile, leverage need, and how the property is titled. Lendmire is a mortgage broker, not a lender. It works with a network of wholesale HELOC lenders and matches your scenario to the program whose guidelines suit it.

That is why this article does not list companies. A ranking of lenders would hide the factors that decide your outcome. Two questions do most of the sorting.

First, is your target an investment property or your own home? Investment lines are limited to 70% CLTV, a 700 minimum credit profile, a $500,000 maximum line, and the 5/25 structure. If your goal is to pull equity from a rental you own, an equity line may be too small or too tightly capped.

Second, can the property qualify on rent? A DSCR loan (debt service coverage ratio loan) is a closed-end loan that qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. Many select programs start at a 1.00 coverage floor. A separate select-lender path takes coverage below 1.00, with leverage and terms adjusted.

On a DSCR cash-out refinance, leverage on standard rentals tops out around 75% LTV across most of the network, with about six months of seasoning as the common expectation. Loan sizes run up to $3,000,000 on standard programs, and smaller balances are available through select lenders. Extended terms and interest-only periods are available through select lenders in the network, and adjustable structures exist for investors who want them. Each program has its own credit and reserve rules, and none of this is a commitment to lend. Terms depend on the lender’s guidelines, the property type, the leverage, and a full review of the credit profile.

For the full picture, read Lendmire’s complete DSCR loans guide. If you earn income through self-employment, read Lendmire’s piece Top Bank Statement HELOC Providers With a 10-Year Interest-Only Draw Period.

Who Fits and Who Does Not

This structure fits an investor who owns a rental individually, has a 700 or better credit profile, and wants a modest line of up to $500,000. It also fits an owner who plans to repay or refinance before the interest-only years end. The review basis is your personal credit and DTI, not the property’s rent.

It fits poorly in four cases:

• Your rental is titled in an LLC.
• You need more than 70% CLTV on an investment property.
• You want a fixed payment that never changes.
• You would struggle to carry the amortizing payment after the draw ends.

Key Terms Defined

CLTV (combined loan-to-value): Your first mortgage plus the new line, divided by the property’s value.

Draw period: The opening window in which you can borrow against the line and pay interest only.

Repayment period: The phase after the draw, when you pay principal and interest and can no longer borrow.

Interest-only payment: A payment that covers interest alone, so the balance you owe stays flat.

Payment shock: The jump in your payment when the draw ends and principal is added.

DSCR: A coverage ratio that compares a rental’s income to its housing payment, used to qualify investment loans.

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. An illustrative calculator on the site can give you a rough sense of the structure, though it is an estimate, not a quote.

The strongest question to ask any provider is what the payment looks like on the day the draw ends.

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.

References

1. Experian

2. NerdWallet: HELOC Calculator

3. Consumer Financial Protection Bureau: Using Home Equity guide

4. Ask CFPB explainer