Top HELOC Providers to Fund a Landscaping Project

The Quick Read: The best provider for a landscaping line depends on the property, its occupancy type, how it is titled, and the combined leverage after the new line. Lendmire is a mortgage broker, not a lender, and it matches each file to the wholesale lender whose program fits the scenario. Landscaping is an allowed use, so the project is not what decides eligibility. The structure of the line is.

• Occupancy sets the ceiling: investment lines top out at 70% CLTV, while primary residences and second homes reach higher tiers.
• Title matters: the line must be held by an individual or a revocable living trust, not an LLC.
• On both of the network’s programs, at least 75% of the line is drawn at closing.
• Pricing floats for the life of the line and never converts to fixed.
• Size the line to a defined scope, since a large share is drawn at closing.

Landscaping is a common reason to open a home equity line. The scope is uncertain, the work often comes in phases, and a revolving structure feels like a natural match. For an investor, though, the same project sits on top of a rental, a second lien, and a later refinance. This article walks through how the product works, how underwriting treats it, and where it breaks.

Lendmire does not rank or name lenders here. The right lender depends on your situation, and a broker that shops several wholesale lenders can match the scenario to the program. Lendmire’s wholesale network offers HELOCs in 16 full-service states only, narrower than its 41-market DSCR footprint.

What a HELOC Actually Is

A HELOC is an open-end line of credit secured by home equity. Equity is the home’s value minus the mortgage balance. The CFPB explains that you can borrow repeatedly up to the limit during a draw period, typically with special checks or a card. Some plans set a minimum draw or require an initial draw at setup. If you fall behind, you could lose the home.

After the draw period comes the repayment period. The CFPB notes it is often 10 or 20 years, that payments are often significantly higher once it starts, and that some plans require the whole balance at once.

A HELOC is different from a DSCR loan. A DSCR loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines. A HELOC is reviewed on credit, income or debt-to-income, equity, and the property. The complete DSCR loans guide covers the investor-loan side of that contrast.

How Underwriting Treats a Landscaping Line

Underwriters look at the borrower and the property, not the project. The steps run in a fixed order.

1. Equity test. The lender adds the first-mortgage balance and the new line limit, then compares the total to appraised value. That is the combined loan-to-value ratio, or CLTV. The line is sized off the cushion.

2. Credit and income. The network uses a single-bureau score keyed to the primary wage earner, with the report no more than 90 days old at closing. The maximum debt-to-income ratio is 50%, lowered to 45% for credit profiles from 600 to 679. Going above 45% therefore requires a score of at least 680. Qualification runs on the interest-only payment calculated on the maximum draw.

3. Valuation. Lines at or below $500,000 ordinarily run an automated valuation with no traditional appraisal, though a higher CLTV may require a secondary valuation. Every line above $500,000 requires a full appraisal. A borrower may request one in any case.

4. Closing and initial draw. On the network’s two programs, at least 75% of the line is drawn at closing. This is not a fully revolving card. For a landscaping bid, that favors a defined scope.

5. Draw period. You pay interest on the drawn balance, with pricing that floats. After closing, the minimum subsequent draw is $1,000 on the longer-runway program, except Texas at $4,000.

6. Repayment period. The line closes to new draws and payments amortize principal and interest. Bankrate notes that repayment can run up to 20 years on the same amortization schedule as a regular mortgage, and that early payoff can trigger penalties on some plans.

The Two Program Structures

The network places files with two wholesale HELOC programs. The first is a higher-leverage program. The second is a longer-runway program, so called because it offers the longer interest-only draw.

On primary residences and second homes, two draw structures exist. One is a 3-year interest-only draw with a 17-year fully amortizing repayment. The other is a 5-year draw with a 25-year repayment. Tennessee shortens both to 3 years/12 years and 5 years/10 years. Investment lines run the 5-year draw and 25-year repayment structure only.

A figure quoted from one program always carries that program’s own terms. They are not interchangeable.

Occupancy Sets the Ceiling

The ceiling depends on how the property is used, so quoting a single number would mislead.

The 90% tier exists only at a 720-or-better credit profile. On an investment property, 70% CLTV is the ceiling at both the 700 and 720 tiers. The minimum credit score also varies by occupancy: each lane has its own floor, with investment at 700, second homes at 640, and primary residences at 600.

A line above $500,000 is primary-residence only. It requires a credit profile of 700 or better (720 on the longer-runway program), caps at 75% CLTV, and requires a full appraisal.

Where the Rental Property Lane Narrows

A rental HELOC is a narrow lane. Many lenders offer lines only on a primary residence. Through this network, investment lines exist, but the box is tight.

• Title. Fee simple or leasehold held by the individual borrower or a revocable living trust. LLCs, corporations, partnerships, and irrevocable, blind, or land trusts cannot hold title. A rental already deeded to an LLC needs a vesting change, or a DSCR cash-out instead. That is the sharpest structural difference from a DSCR loan, and it deserves a look before you plan the project.
• Credit. Investment lines start at 700.
• Property type. Single-family, 2-4 units, PUDs, townhomes, and condominiums, including non-warrantable condos, are eligible. Manufactured homes, co-ops, condotels, log homes, commercial, mixed-use, and agricultural-zoned properties are not.
• Exposure. A borrower is limited to three lines. Combined exposure caps at $2,000,000 on the higher-leverage program and $750,000 on the longer-runway program. A borrower with more than 15 financed properties is not eligible.
• Listings. A property listed for sale, or listed within the past 60 days, is ineligible in NC, PA, TN, TX, and WA.

Texas has its own rules. The 12-day waiting period, the one-lien-at-a-time rule, and 12-month seasoning bind primary residences only. A Texas primary residence caps at 80% combined loan-to-value. Texas properties are limited to 10 acres.

Derogatory history also splits. A bankruptcy needs 4 years of seasoning from discharge or dismissal on both programs. On primary residences and second homes, one program seasons a foreclosure at 7 years and a deed-in-lieu, pre-foreclosure, or short sale at 4. The other declines that history regardless of age. Investment files follow the 7-and-4-year path.

Key Terms Defined

• CLTV: the first-mortgage balance plus the new line, divided by the home’s value.
• Draw period: the stretch when you can borrow against the line, usually paying interest only.
• Repayment period: the later stretch when draws stop and payments cover principal and interest.
• Initial draw: the share of the line funded at closing, which accrues interest from day one.
• DSCR: monthly rent divided by the full monthly housing payment on a rental, used to size investor loans.

Where the General Rule Breaks

Landscaping on a rental, funded by a primary-residence line. This is common, and it raises a financing question: the line is secured by your primary residence, so the borrowing sits against that home even though the money is spent on a different property. That affects how a lender views your overall debt and how much equity remains in the home that secures the line. A DSCR loan on the rental is underwritten on the property’s own income, so it is worth understanding how a balance on the primary-residence line fits alongside it. Tax treatment varies by situation; this is not tax advice — consult a qualified professional.

The draw structure. Because at least 75% is drawn at closing, a project that only works while payments are interest-only is underfunded. Interest accrues on money you have not yet paid a contractor. Pricing also floats through both the draw and repayment periods, so the payment can move.

Payment shock. Payments rise when repayment starts, as the CFPB flags. A rental that cash-flows only on the interest-only payment is at risk.

Value expectations. Outdoor work may support a higher appraised value, depending on comps and underwriter review. It rarely returns its full cost. No dollar lift is assured.

Leverage stacking. A second lien raises total leverage. Any later DSCR refinance has to be sized around it. Combined leverage and a floating-rate line change the cash flow a later lender sees. On DSCR files, clearing 1.00 compares rent to the full housing payment only. It is not the same as positive cash flow, because repairs, vacancy, and management sit outside the ratio.

How the Choice Looks in Practice

Run the choice as a sequence of questions.

• Which property secures the line? An investment property caps at 70% CLTV. A primary residence has more room. Occupancy sets the ceiling.
• How is the rental titled? If it sits in an LLC, a HELOC on that property may not be available through this network.
• Is the scope defined? A fixed bid fits a line with a large initial draw. A vague, evolving scope fits it poorly.
• What does the line do to a later refinance? A DSCR cash-out refinance is typically capped around 75% LTV on standard rentals and looks at the existing second lien. Lendmire’s piece Top Investment Property HELOC Providers to Fund a Rehab Between Purchase and Sale covers a similar sequencing problem.

The alternatives are paying cash, a personal loan, a fixed home equity loan, or a cash-out refinance. Each has a different trade-off between flexibility, cost, and leverage. A broker sees several programs side by side, which is the practical advantage of working through one.

What to Gather Before You Apply

• Government ID and a current credit report path, since the network uses a single-bureau score no more than 90 days old at closing.
• Mortgage statements for every financed property, because housing history applies across all financed properties.
• Title or vesting documents showing the individual or revocable trust as owner.
• The contractor bid or scope, so you can size the line to the work.
• Income documentation under the applicable program, subject to lender guidelines.

Ask each provider whether the initial draw is mandatory, how the draw and repayment periods are structured, and whether early payoff carries a penalty.

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. Every figure is subject to lender guidelines and full file review, and nothing here is a commitment to lend.

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. CFPB: What Is a Home Equity Line of Credit HELOC

2. Bankrate – HELOC draw period