The Quick Read: It depends on three numbers: the property’s value, the combined loan-to-value (CLTV) cap that applies to the property’s occupancy, and the first mortgage balance. The line equals value times the cap, minus what you already owe, which is never all of your equity. CLTV is the total of every loan on the property divided by its value.
- On this network, an investment-property line tops out at 70% CLTV, with a $500,000 maximum line and a 700 minimum credit score.
- On a primary residence or second home, the ceiling reaches 90% CLTV, but only with a 720-or-better credit profile.
- Your first mortgage counts in full, so a bigger balance means a smaller line.
- A dollar cap, a minimum line size, and a debt-to-income test can each cut the result below the percentage math.
The Formula in Three Steps
The maximum line is value times the cap, minus every lien already on the property. A lien is a lender’s legal claim against the property. Lenders do not lend against your equity directly. They set a ceiling on total debt, and the line fills whatever room sits under that ceiling.
How large a line the equity supports.
An equity line is sized by combined loan-to-value, occupancy, and credit — not by rental coverage. Switch the occupancy or the credit band and the ceiling moves with it.
Investment-property lines require a 700 minimum credit score; second-home lines start at a 640 minimum and primary-residence lines at 600, and the combined-LTV ceiling steps down as the credit band drops on primary-residence and second-home lines and holds on investment-property lines; the line cap steps down on primary-residence lines and holds at every tier on investment-property and second-home lines.
A debt-to-income ratio above 45% requires 680+ credit. Profiles under 640 are limited to single-family homes. At least 75% of the approved line is drawn at closing. Ceilings, floors, and caps update from Lendmire’s centralized guideline source.
Line estimate
Illustrative estimate only — not a quote, Loan Estimate, approval, or commitment to lend. The rate is an editable assumption; equity-line pricing is variable through both the draw and repayment periods and never converts to fixed. Occupancy and credit drive the ceiling together: an investment property tops out at 70% combined LTV (minimum credit 700, line cap $500,000); a second home tops out at 90% combined LTV (minimum credit 640, line cap $500,000), with the ceiling stepping down as the credit band drops (the cap holds at every tier); a primary residence tops out at 90% combined LTV (minimum credit 600), and its $750,000 maximum line is available only at 75% combined LTV or below with a 700-or-better credit profile (720 on the longer-runway program) and a full appraisal. Lines above $500,000 require a full appraisal. Credit, debt-to-income, property type, and full underwriting review all affect the final line.
Here are the steps:
1. Establish the property’s value from an automated valuation or an appraisal.
2. Multiply that value by the CLTV cap.
3. Subtract the first mortgage balance and any other liens.
The CFPB’s HELOC booklet describes the same method. Lenders take a percentage of the home’s value and subtract the mortgage balance. NerdWallet’s worked example uses a $300,000 home with a $200,000 first mortgage and an 85% cap, which leaves a $55,000 line, per NerdWallet’s HELOC explainer.
That 85% is a market-wide figure for owner-occupied homes. Experian reports that most lenders cap at 85% CLTV, and some go to 90% or even 100%. Those are market statistics, not the network figures. On this network, the ceiling is 70% CLTV on an investment property. It is 90% on a primary residence or second home, and only at 720 or better.
One more point catches people. CLTV counts the full credit limit, not the amount you plan to draw. A line you leave mostly unused still uses up room under the cap.
What Caps Apply on This Network?
The cap depends on occupancy and credit score, and it rises with both. Lendmire brokers home equity lines through select wholesale partners in 16 full-service states. That is narrower than its 41-market DSCR footprint, which includes Washington, D.C. These figures are guidelines, subject to lender review and a full look at the file.
Two wholesale programs sit behind these lines, and their terms differ in places. This article calls them the higher-leverage program (a 3-year interest-only draw with a 17-year repayment) and the longer-runway program (a 5-year interest-only draw with a 25-year repayment). Where a figure belongs to only one of them, the text says.
| Occupancy | Credit score | Max CLTV | Max line |
|---|---|---|---|
| Investment property | 700+ | 70% | $500,000 |
| Primary residence | 720+ | 90% | $500,000 |
| Primary residence | 700+ (720 on the longer-runway program) | 75% | $750,000 |
| Primary residence | 660+ | 85% | $500,000 |
| Second home | 720+ | 90% | $500,000 |
| Second home | 640+ | 75% | $500,000 |
Two things stand out. The 90% figure exists only at 720 or better, on primary residences and second homes. And a line above $500,000 is open only to a primary residence. Such a line requires a score of 700 or better (720 on the longer-runway program). It also needs a full appraisal and caps at 75% CLTV.
The score floor also shifts by occupancy. The table lists only the tiers shown, but the network’s lowest eligible score is 600 on a primary residence, at lower CLTV caps than the rows above. On a second home the minimum is 640, and on an investment property it is 700. A score that works for the home you live in may not work for a rental.
How Much Room Is Left? Five First-Mortgage Sizes
The more of the cap your first mortgage uses, the less line remains. The table shows room as a share of the property’s value. Each column names the occupancy and credit tier it applies to.
| First mortgage (% of value) | Investment, 70% | Primary, 75% (700+) | Primary or second, 85% | Primary or second, 90% (720+) |
|---|---|---|---|---|
| 40% | 30% | 35% | 45% | 50% |
| 60% | 10% | 15% | 25% | 30% |
| 65% | 5% | 10% | 20% | 25% |
| 70% | 0% | 5% | 15% | 20% |
| 80% | 0% | 0% | 5% | 10% |
Read it like this. Picture an investor with a rental whose first mortgage sits at 60% of value. At the 70% investment ceiling, that leaves 10% of value for a line. The same first mortgage on a primary residence at the 90% tier, with a 720 profile, leaves 30%.
Now take a zero-room case. If the first mortgage is already 70% of value, an investment-property line has nothing to fill. Nothing under the cap means no line at all, not a small one. When your loan balance sits at or near the ceiling for your occupancy and credit tier, only a pay-down or a rise in value can open room, and then only by the amount of the change.
Values move the answer dollar for dollar. If the appraised value drops, the cap-times-value number drops with it. The CFPB booklet also notes that lenders can reduce a line if the home’s value falls.
A second lien works the same way. An existing equity loan or earlier line stacks on top of the first mortgage and shrinks room just like a larger first mortgage would. The test is always total debt, never any single loan.
Which Limit Binds First?
The lowest of several limits sets your line. The percentage math is only the first test.
The dollar cap. An investment-property line runs up to $500,000. A second home also tops out at $500,000. A primary residence can reach $750,000, subject to the credit and appraisal conditions above. A high-value property can hit the dollar cap well before it hits the percentage cap.
The tier cap. Dollar limits come attached to credit tiers. The 90% tier on a primary residence applies only up to $500,000. A borrower at 700+ who wants the 75% tier can go higher, up to $750,000. A bigger line sometimes means taking a lower percentage.
The minimum. Lines start at $25,000, with Michigan’s floor at $10,000. If the room under the cap falls below the minimum, there is no line to offer.
The draw requirement. At least 75% of the line is drawn at closing. You cannot open a large line and leave it unused. After closing, the minimum subsequent draw is $1,000 under the longer-runway program, which is the program that states it.
Debt-to-income. Maximum DTI is 50%, or 45% for credit profiles from 600 to 679. A ratio above 45% requires at least a 680 score. The lender reviews your file on the interest-only payment calculated on the maximum draw, not on what you plan to borrow. A large line can therefore fail on income even when the equity math works.
What Else Moves the Number
Credit decides your tier, and the tier decides your cap. A 720 profile and a 660 profile can own the same property and see different ceilings. Credit comes from a single-bureau score model keyed to the primary wage earner. The report must be no more than 90 days old at closing, and rescores are not available.
Valuation sets the other half. Lines at or below $500,000 ordinarily use an automated valuation with no traditional appraisal. A higher CLTV may require a secondary valuation. Every line above $500,000 needs a full appraisal, and you may request a full appraisal in any case. If you believe your home is worth more than the automated figure, that request is the lever to pull.
History matters too. Seasoning here means the waiting period after the event. A bankruptcy needs four years of seasoning from discharge or dismissal on both programs. Foreclosure-family history is where the two programs split on primary residences and second homes. Only one of them accepts it: that program takes a foreclosure after seven years and a deed-in-lieu, pre-foreclosure, or short sale after four. The other declines that history regardless of age. Investment files follow the same seven-year and four-year foreclosure-family path.
Property type matters before any math. Single-family homes, 2-4 unit properties, PUDs, townhomes, and condominiums (including non-warrantable ones) are eligible. Manufactured homes, co-ops, condotels, log homes, commercial, mixed-use, and agricultural-zoned properties are not offered.
Two Structures, One Catch
An equity line here is a standalone loan in first or second lien position. When you already hold a first mortgage, it sits behind it, which the CFPB describes as a second mortgage you pay in addition to the first.
On a primary residence or second home, both draw structures are available. The higher-leverage program has a 3-year interest-only draw with a 17-year fully amortizing repayment. Investment lines use the 5-year draw and 25-year repayment structure only, which is the longer-runway program. In every case, the pricing floats across the draw and repayment periods and never converts to fixed.
That variable structure is the catch for rental owners. Pricing moves with the market, and you cannot lock it in. A variable-pricing line sitting behind a rental’s first mortgage deserves a plain stress test before you sign.
The Investor Twist: Who Can Hold Title
An investment-property line is narrower than most investors expect. Title must sit with you as an individual or in a revocable living trust. LLCs, corporations, partnerships, and irrevocable, blind, or land trusts cannot hold title. If your rental already sits in an LLC, you need a vesting change or a different product. This is the sharpest structural difference from a DSCR loan.
Exposure has limits. A borrower may hold up to three lines, and each investment line tops out at $500,000. Investment lines run only on the longer-runway program, a 5-year interest-only draw with a 25-year fully amortizing repayment, so the $750,000 combined exposure cap of that program is the one that applies to them. The $2,000,000 combined cap belongs to the higher-leverage program, which does not offer investment lines. A borrower with more than 15 financed properties is not eligible.
Investment lines also come with the highest credit floor of the three occupancy types, at 700. At 700 and up, the cap is 70% CLTV on an investment line, with a $500,000 maximum. For related reading, Lendmire’s piece How Much Can You Borrow on an Investment Property HELOC for Owners With No First Mortgage? covers the same product without a first lien in front. Lendmire’s piece How Much Can You Borrow on an Investment Property HELOC for Keeping Your First Mortgage? covers the situation where you want to keep the first loan as is.
When a DSCR Cash-Out Beats a Line
A DSCR cash-out refinance often fits better when the goal is cash from a rental you own in an LLC, or when your first mortgage balance leaves little or no room under a 70% cap. DSCR, short for debt service coverage ratio, compares monthly rent to the monthly payment on the property (principal, interest, taxes, insurance, and any HOA dues, together called PITIA). A DSCR loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines.
The structure is different, not just the underwriting. A line sits behind your first mortgage. A DSCR cash-out replaces it.
| Factor | Investment HELOC | DSCR cash-out |
|---|---|---|
| Reviewed on | Your credit and DTI | Property rent vs. payment |
| First mortgage | Stays in place | Paid off by new loan |
| Title | Individual or revocable trust | LLC possible |
| Typical top leverage | 70% CLTV | About 75% LTV |
Title in an LLC is possible under a DSCR loan, subject to lender program eligibility. Here are the program ranges that matter, from what the brokerage sees across the wholesale network:
- Leverage. A cash-out refinance on a standard rental tops out around 75% LTV across most of the network. On short-term-rental collateral, cash-out is 70%.
- Seasoning. About six months of ownership is the common expectation for a cash-out.
- Coverage. A 1.00 ratio is where many select programs start. A separate select-lender path takes coverage below 1.00, with leverage and terms adjusted. Stronger ratios open better pricing and leverage.
- Credit. A 620 floor exists in parts of the network. Most programs want around 660. A 700-plus score unlocks the strongest leverage tiers.
- Loan size. Loans of up to $3,000,000 are standard on most programs, and smaller balances are available through select lenders. Above $2,500,000, the network generally holds to 30-year fixed structures.
- Reserves. These vary by lender, leverage, loan size, and transaction type. About six months of PITIA is common, and conservative files at modest leverage under $1,500,000 can see reserves waived. Larger loans typically step up to about nine months.
A caution that applies to both products. Clearing 1.00 coverage is not the same as positive cash flow. The ratio compares rent to PITIA only, and repairs, vacancy, management, utilities, and capital expenses sit outside it. You can pass the test and still lose money on the property.
A DSCR cash-out also means giving up your existing first mortgage and its terms. If that loan is a keeper, a line behind it may be the better path, provided the title and leverage rules fit. If it is not, a cash-out may be a cleaner move. The complete DSCR loans guide walks through the full program.
Pre-Application Checklist
Before you ask for a number, gather these items:
- Your current first mortgage statement, showing the balance and lien position.
- A list of any other liens on the property, including earlier lines or equity loans.
- Proof of how title is held: individual, revocable trust, or entity.
- Your own estimate of current value, to compare with the lender’s automated figure.
- Your housing payment history on every financed property.
This is the same math a lender will run, so running it yourself first saves a wasted application.
Frequently Asked Questions
Can I borrow 100% of my home’s value with a HELOC?
No, not on this network. The ceiling is 70% CLTV on an investment property and 90% on a primary residence or second home, and 90% requires a 720-or-better profile. Some market lenders go higher. Experian reports that a minority of lenders reach 100%, but those are market-wide figures and not network programs.
Does CLTV count what I draw or the whole credit limit?
The whole limit counts. Lenders add the full line to your first mortgage and any other liens when they test the cap. That is also why a draw requirement exists. At least 75% of the line is drawn at closing, so a large unused line is not an option here.
What happens if my first mortgage already uses up the ceiling?
You get no line. Room under the cap is value times the cap minus all existing debt, and it cannot fall below zero. A pay-down or an increase in appraised value is what opens room. A request for a full appraisal can help if the automated value looks low.
Can an LLC borrow on a rental property HELOC?
No. Title must be held by the individual borrower or a revocable living trust, so LLCs, corporations, and partnerships cannot hold title on these lines. A property already deeded to an LLC needs a vesting change, or a DSCR cash-out instead.
Is a HELOC the same as a DSCR loan?
No. A HELOC is reviewed on your credit and debt-to-income ratio. A DSCR loan is reviewed primarily on the property’s rental income, subject to lender guidelines. A line sits behind your first mortgage, while a DSCR cash-out replaces it.
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. Any illustrative calculator estimate is only a starting point, since every figure remains subject to lender guidelines and is not 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.
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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
2. NerdWallet: HELOC explainer
3. Experian
4. CFPB: Difference between a home equity loan and a HELOC
This article is part of Lendmire’s HELOC & home equity loan program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: How Much Can You Borrow With a DSCR Cash-Out Refinance on a Multi-Unit Short-Term Rental? · Where to Get a DSCR HELOC on a Short-Term Vacation Rental · How Much Can You Borrow With an Investment Property HELOC on a Duplex or Triplex Rental?
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Compliance and disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage broker and is not a direct lender, depository institution, financial advisor, or tax professional. Content in this article is general market analysis and educational information — not financial, legal, or tax advice for any specific situation. Lendmire does not guarantee loan approval; every transaction is subject to underwriting by the funding lender. Mortgage pricing and loan program guidelines are subject to change at any time without notice and vary by borrower characteristics, property type, and state regulations. Lendmire complies with Equal Housing Opportunity. Licensure verification: NMLS Consumer Access.