Banks That Offer a HELOC With a 30-Year Term

The Quick Read: A 30-year HELOC means the line’s total life is 30 years, not that you get a 30-year mortgage-style payoff. It is a draw period, when you borrow against your equity, followed by a repayment period, when borrowing stops and the balance is paid down. Lendmire is a broker, not a lender, so it does not hold the lines itself. It matches your property, credit, and equity to the wholesale lenders whose programs fit, and availability shrinks sharply on rental property.

• The 30 years usually combine a draw phase and a repayment phase. A 5-year draw plus a 25-year repayment is one common shape.
• Investment-property lines on this network cap at 70% CLTV, with a 700 minimum credit score and a $500,000 maximum line.
• Primary-residence and second-home lines can reach higher CLTV, but the 90% tier exists only at a 720-or-better credit profile.
• Entities such as LLCs cannot hold title on these lines. A DSCR cash-out refinance is the usual alternative for LLC-held rentals.
• Lines are available only in 16 full-service states, which is narrower than Lendmire’s DSCR footprint.

Which bank offers the line is only the second question. The first is “what structure am I actually getting, and does it work on my collateral?” That is what the rest of this page covers. For the bigger picture on rental financing, see the complete DSCR loans guide.

What Does a “30-Year Term” Actually Mean?

A 30-year HELOC term is the total life of the line: a draw period plus a repayment period. You borrow during the draw. Then the line closes to new borrowing, and the balance amortizes over what remains. It is not a 30-year draw, and it is not a 30-year fixed payoff.

The CFPB describes the mechanics the same way. You can borrow up to your limit during the draw period. When it ends, repayment begins. The CFPB notes repayment schedules are often ten or 20 years, so a 30-year total is a longer-than-typical split that depends on how the two phases are divided.

Two splits cover most of what you will see in the wholesale channel:

So the 30-year version on this network is the 5-year draw with a 25-year repayment. The shorter 3/17 structure totals 20 years. Tennessee shortens both structures, to 3/12 and 5/10.

Key Terms Defined

Draw period: The stretch when you can borrow against the line, often paying interest only.

Repayment period: The stretch after the draw ends, when you can no longer borrow and the balance is paid down with principal and interest.

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

Lien position: Whether the line sits first in line for repayment if the property is sold or foreclosed, or behind another mortgage.

Vesting: Who legally holds title, such as you personally, a trust, or an LLC.

DSCR (debt service coverage ratio): Monthly rent divided by the full monthly housing payment, used for investor loans that qualify primarily on property-level rental income.

How Do Lenders Size and Underwrite the Line?

Lenders size a line from equity. Take the property value, multiply by the lender’s CLTV cap, then subtract what you owe on the first mortgage. The CFPB booklet describes the limit this way, as a percentage of appraised value minus your mortgage balance.

On this network, the steps run in a clear order:

1. Collateral and vesting. Title must sit with you personally or in a revocable living trust. LLCs, corporations, partnerships, and irrevocable or land trusts cannot hold title.

2. Credit. The program floor is 600, but the floor rises with occupancy. Investment lines start at 700, and second homes start at 640.

3. CLTV tier. The ceiling depends on credit tier and occupancy.

4. Income. Debt-to-income tops out at 50%. It drops to 45% for profiles from 600 to 679. A ratio above 45% requires 680 or better. The test uses the interest-only payment calculated on the maximum draw.

5. Valuation. Lines at or below $500,000 ordinarily use an automated valuation. A full appraisal is required above $500,000.

6. Draw at closing. At least 75% of the line is drawn at closing. After that, the minimum subsequent draw is $1,000 (Texas is $4,000) on the longer-runway structure.

Pricing floats across both the draw and repayment periods and never converts to fixed. Plan for a payment that moves. The CFPB notes that HELOCs usually carry adjustable rates, so payments vary with the balance.

Which CLTV Ceilings Apply to Which Property?

The ceiling depends on occupancy, and no single number covers everything. On an investment property, the ceiling is 70% CLTV with a 700 minimum score and a $500,000 maximum line. That is the only investment tier. Primary residences and second homes reach higher, but only with strong credit.

The 90% tier, on either a second home or a primary residence, exists only at a 720-or-better credit profile. Lower scores step down. A primary residence at 700 to 719 reaches 85% CLTV up to $500,000, and at 640+ it reaches 80%. A Texas primary residence is a homestead and caps at 80% combined loan-to-value.

Lines above $500,000 are primary-residence only. They need a credit profile of 700 or better (720 on the 5-year draw / 25-year repayment structure), cap at 75% CLTV, and require a full appraisal.

Market surveys sometimes report investment-property CLTV caps of 70 to 75 percent, and NerdWallet notes that these lines are not offered by every lender. On this network, the investment-property ceiling is 70% CLTV. Subject to lender guidelines and full file review.

Why Are Rental Properties the Hard Part?

Rental collateral narrows the field in three ways. Fewer lenders write the line at all. Many restrict by location. And the title rule excludes entity-held rentals. Investment-property lines carry stricter requirements, and some lenders limit them by location or by whether the home is rented year-round.

Here is where the network’s rules bite hardest:

• Vesting. A rental already deeded to an LLC needs a vesting change before it can carry a line. Or skip the line and use a DSCR cash-out refinance, which qualifies primarily on property-level rental income covering the payment, subject to lender guidelines.
• Property type. Single-family, 2-4 units, PUDs, townhomes, and condos (including non-warrantable) are eligible. Manufactured homes, co-ops, condotels, log homes, commercial, mixed-use, and agricultural-zoned properties are not.
• Listing status. A property listed for sale, or listed within the past 60 days, is ineligible in NC, PA, TN, TX, and WA.
• Portfolio size. A borrower is limited to three lines, and owning more than 15 financed properties makes you ineligible.
• Geography. Lines are offered only in 16 states: AL, CA, CO, FL, GA, IN, MI, MT, NM, NC, OH, PA, TN, TX, VA, and WA.

A bank line also leans on personal debt-to-income. A growing portfolio can hit that ceiling before the equity runs out. That is the structural gap a DSCR product fills.

Where Does the 30-Year Rule of Thumb Break?

Four edge cases trip up borrowers who assume the headline term tells the whole story.

The payment steps up at the end of the draw. During the draw, payments are typically interest-only. When repayment starts, principal begins to amortize, and the payment can jump. Look at your balance, not just the term.

The shorter structure is not a 30-year line. The 3-year draw with a 17-year repayment totals 20 years. If a quote says “20-year line,” confirm which structure it belongs to.

Foreclosure history splits by program. On primary residences and second homes, one wholesale program seasons a foreclosure at 7 years and a deed-in-lieu, pre-foreclosure, or short sale at 4 years. Another declines the history entirely, regardless of age. A bankruptcy needs 4 years from discharge or dismissal on both. Investment files follow the 7-and-4-year path.

Selling means paying it off. The CFPB’s consumer booklet says that if you sell, you generally must pay the HELOC off in full right away. The same booklet warns that renting out your home may be prohibited under some line terms. For an investor, that makes the exit plan part of the decision.

Brokers earn their keep in these situations. A broker with a network of wholesale HELOC lenders can compare programs against your file. The right fit depends on the property, credit profile, and how much leverage you need.

What Does the Decision Look Like in Practice?

Start with the question of what the money is for. A line works well for flexible, staged needs, such as rehab draws or a down payment on the next purchase. A DSCR cash-out refinance fits better when you want a larger, one-time amount, a fixed structure, or LLC ownership.

Then work through this checklist:

1. Confirm occupancy and title. Is the property in your name or a revocable trust? 2. Check your credit against the tier. Investment lines start at 700. 3. Estimate equity at the 70% CLTV ceiling for an investment property. Subtract your first mortgage balance. 4. Test your debt-to-income at the interest-only payment on the full line. 5. Plan for the day the draw ends and the payment steps up. 6. Check the state list and the listing rules.

A line with a long runway lowers the required payment during the draw. It also means a long-lived, floating-price obligation secured by your property. That tradeoff belongs in your plan, not in the fine print.

Compare this with a line on a primary residence. If you own both, the primary home often carries the higher ceiling, up to 90% CLTV at a 720-or-better credit profile. Some investors tap that equity for a rental purchase. The broader comparison lives in Lendmire’s piece on an investment property HELOC on a long-term buy-and-hold rental.

How Do You Find the Right Lender for a 30-Year Term?

You do not pick a bank off a list. The lenders that write this product depend on your state, property, and credit profile, and many do not filter by investment property on their own sites. Benzinga advises checking each lender directly because of that. A broker shops several wholesale lenders at once and matches your file to a program.

Prepare these items before you start:

• Your credit report, no more than 90 days old at closing.
• Your current mortgage balance and an estimate of the property’s value.
• Proof of how title is held.
• Rental income documentation if the property is rented.
• A list of all financed properties.

Tradeline and housing-history standards vary by program. The 5-year draw / 25-year repayment structure requires two tradelines seasoned 12 months or one seasoned 24, with housing history of 0x30x6 and 1x30x12 at 640 and above.

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. Reach the team at 828-256-2183.

About Lendmire

Lendmire (NMLS# 2371349) is a mortgage brokerage serving homeowners and real estate investors in its 16 full-service states. Home equity lines of credit are arranged through wholesale lending channels; Lendmire brokers the line and the lender underwrites each application under its occupancy-based 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. CFPB – HELOC booklet

3. NerdWallet

4. Benzinga – Best HELOC for investment property