Top HELOC Providers at the Highest Loan-to-Value Lenders Allow

The Quick Read: The highest loan-to-value a home equity line allows depends on how the property is occupied, and on an investment property that ceiling sits well below the figure advertised for owner-occupied homes. Lendmire is a mortgage broker, so it does not rank providers. It matches a borrower’s file to the wholesale lender whose program fits.

• On an investment property, the network’s ceiling is 70% combined loan-to-value (CLTV), with a 700 minimum credit score and a $500,000 maximum line.
• On a primary residence or second home, the ceiling reaches 90% CLTV, and only at a 720 or better credit profile.
• A HELOC is underwritten on the borrower’s credit, debt-to-income and equity. It is not underwritten on rent.
• Entity-held rentals (LLCs, corporations, partnerships) cannot take these lines, so a DSCR cash-out refinance is the usual alternative.

Key Terms Defined

LTV is the loan balance divided by the property’s value.

CLTV is every lien on the property, including the new line, divided by value.

Draw period is the stretch when the borrower can pull funds, usually on interest-only payments.

Repayment period is the stretch after the draw ends, when the balance amortizes.

Lien position is whether the line sits first or second behind an existing mortgage.

DSCR is rent divided by the full monthly housing obligation (principal, interest, taxes, insurance and any dues).

What “Highest Loan-to-Value” Really Means Across HELOC Providers

The best provider for a given file depends on occupancy, credit profile, line size and how the property is titled. The headline number matters less than the collateral it applies to.

A home equity line is an open-end line of credit. The borrower can draw, repay and draw again against equity, which is the home’s value minus what is owed. The Consumer Financial Protection Bureau’s overview of HELOCs describes a draw period followed by a repayment period, with repayment often running ten or 20 years.

Market surveys put the typical cap on investment-property lines at 80% of value, and Experian’s explainer on investment-property HELOCs adds that enough equity should remain so at least 20% is left after the full line is drawn. Those are market-wide figures. Across Lendmire’s wholesale network, an investment-property line tops out at 70% CLTV. The 80% market figure is not available through the network on a rental.

The figures below differ by occupancy, so one number never fits every file.

Each ceiling steps down with the credit score. On a primary residence, 720+ reaches 90% CLTV up to $500,000, while 700 to 719 reaches 85% up to $500,000. The 680+ and 660+ tiers also reach 85% up to $500,000. A 640+ profile reaches 80%, while 620+ reaches 70% up to $400,000. On a second home, 720+ reaches 90%, 700+ and 680+ reach 85%, 660+ reaches 80%, and 640+ reaches 75%. On an investment property, 700+ and 720+ both land at 70%. A rental line never reaches the tiers an owner-occupied line can.

How Underwriting Treats the Line, Step by Step

A HELOC file clears when the borrower, the property and the equity all pass. Rent plays no part in the test. The order below is how the deal works.

1. Value the property. Lines at or below $500,000 ordinarily run an automated valuation with no traditional appraisal. A higher CLTV may require a secondary valuation, and the borrower may request a full appraisal in any case. Every line above $500,000 requires a full appraisal.

2. Compute CLTV. Add the first mortgage and the new line, then divide by value. The CFPB’s HELOC booklet describes the same method: a percentage of appraised value, minus what is already owed.

3. Find the maximum line. The formula is value times the CLTV cap, minus existing liens. Take a home worth 100 units with a 50-unit first mortgage. A 70% investment cap leaves 20 units of room, not 70. A primary residence at 85% leaves 35 units, and at 90% it leaves 40. The dollar caps in the table above can bind before the percentage does.

4. Test the borrower. Maximum debt-to-income is 50%, or 45% for credit profiles from 600 to 679. A ratio above 45% requires a 680 minimum. The qualifying payment is the interest-only amount calculated on the maximum draw, so a line sized large to start is tested at its full size.

5. Review credit. The program floor is 600, using a single-bureau score keyed to the primary wage earner. The report can be no more than 90 days old at closing, with no rescores. Housing history is reviewed across all financed properties.

6. Check derogatory history. A bankruptcy needs 4 years of seasoning from discharge or dismissal. Foreclosure-family history splits by program and occupancy, so it needs a program match before a file goes in.

7. Confirm title and exposure. The borrower must hold title individually or in an inter vivos revocable living trust. A borrower is limited to three lines. A borrower owning more than 15 financed properties is not eligible.

Two Draw Structures

Lendmire places these files with two wholesale programs, and they are built differently. The first, called the longer-runway program here, runs a 5-year interest-only draw followed by a 25-year fully amortizing repayment.

Investment lines use the longer-runway structure only. On both programs, at least 75% of the line is drawn at closing. Pricing floats through the draw and repayment periods and never converts to fixed. The longer-runway program also sets a $1,000 minimum on later draws. A quoted figure always carries its own program’s draw and repayment terms, so compare like with like.

The line can sit in first or second lien position. If a mortgage already exists, the CFPB’s FAQ on HELOCs explains that the new line adds a second payment obligation behind the first. Line sizes run from $25,000 to $750,000. A line above $500,000 is primary-residence only and caps at 75% CLTV. It also needs a credit profile of 700 or better (720 on the longer-runway program) and a full appraisal.

Eligible property types include single-family, 2-4 units, PUDs, townhomes and condominiums, including non-warrantable condos. A 2-4 unit property needs a 640 minimum on the longer-runway program. Manufactured homes, co-ops, condotels, log homes, and commercial, mixed-use or agricultural-zoned properties are not eligible on either program.

Where the Rule Breaks

The general rule is that more equity means a bigger line. Five edge cases bend it.

Occupancy flips the ceiling. A 90% CLTV headline describes an owner-occupied home at a 720 credit profile. Applied to a rental, the same file lands at 70% CLTV. Confirm which collateral a quoted maximum describes before relying on it.

Using the home you live in. Many investors draw on their own residence to fund a rental purchase. The line then sits on the owner-occupied home and gets primary-residence tiers. The trade-off is that the residence now secures the rental deal, so a rental that underperforms puts the family home at risk.

Entity title. LLCs, corporations, partnerships, and irrevocable, blind or land trusts cannot hold title on these lines. That is the sharpest structural difference from a DSCR loan. A property already deeded to an LLC needs a vesting change or a DSCR cash-out instead.

Rental-use restrictions. Renting out a home may be prohibited under a line’s terms. A line on a primary residence is a contract about occupancy, so read the occupancy language before you list the home.

Listing status and state rules. In several states, a property listed for sale or listed within the past 60 days is ineligible. Texas primary residences also cap at 80% combined loan-to-value under homestead rules. Equity-line programs are available in 16 full-service states, which is narrower than the 41-market DSCR footprint.

HELOC or DSCR Cash-Out Refinance?

A line fits when the first mortgage is small or carries terms worth keeping. A DSCR cash-out replaces the first mortgage and qualifies the property on its rent. The two answer different questions, so they sit side by side below.

On a standard rental, a DSCR cash-out tops out around 75% LTV across most of the network. For short-term-rental collateral, the cash-out ceiling is around 70%. Select programs begin at 1.00 coverage, and a separate select-lender path takes coverage below 1.00 with leverage and terms adjusted. DSCR loans can be written to LLC-titled borrowers, subject to lender program eligibility.

Lendmire’s complete DSCR loans guide covers those qualification terms in full.

What Borrowing Near the Ceiling Does to a File

An investor who draws to the cap has no cushion. Take a rental with combined liens at 70% of value. A 10% drop in value moves combined leverage to roughly 78%, with no change in what is owed.

The structure adds payment risk. Pricing floats and never converts to fixed. Payments are interest-only during the draw, then step up when amortization starts. Because the qualifying payment is calculated on the maximum draw, a line sized above need still counts at full size against debt-to-income.

A larger line also does not erase the other tests. It cannot raise a credit floor, change a property’s eligibility or clear a vesting problem. A prudent target keeps combined leverage a step below the ceiling for the occupancy involved. Many investors size the line to the specific use of funds rather than to the maximum.

Finding the Right Provider Through a Broker

The lenders that write a given file depend on property type, credit profile, leverage need and how the borrower holds title. A broker that places files with multiple wholesale lenders can match a scenario to the program whose terms fit. That is the job here. Lendmire does not make the loans.

Before a file goes in, gather these items:

• Government ID, proof of income and an estimate of the home’s value.
• Current mortgage statements for every financed property.
• Evidence of how title is held (individual or revocable trust).
• A credit report dated within 90 days of closing.
• A list of any prior bankruptcy or foreclosure history.

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. Start with the Lendmire page on investment-property HELOC providers and their highest loan-to-value limits.

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.

References

1. The Consumer Financial Protection Bureau’s overview of HELOCs

2. Experian’s explainer on investment-property HELOCs

3. CFPB: What You Should Know About HELOCs (booklet)