The Quick Read: No single program is best for everyone with a signed offer letter, because each lender sets its own rules for counting a job that has not started, so the best fit is a line from a lender that accepts a signed, fixed-salary letter, matched to the occupancy of the home, and opened before the old paycheck stops. A broker can shop that question across several wholesale lenders at once. The rest of this article shows what those lenders look at.
- Lenders decide file by file whether an offer letter counts as income. Rules written for purchase mortgages do not automatically carry over.
- A fixed salary, a signed letter, and no open contingencies make the cleanest file. Probation language and bonus pay make the file harder.
- Occupancy sets the ceiling. On Lendmire’s network, an investment-property line tops out at 70% CLTV, while a primary-residence line can reach 90% CLTV only at a 720-or-better credit profile.
- A home listed for sale, or listed within the past 60 days, is ineligible in several states. That matters for anyone selling the departure home.
- The line is a separate approval from any later DSCR purchase loan, and the two are judged on different things.
What Does “Best Program” Mean for a Relocator?
The best program is the one that accepts your income evidence, fits your occupancy, and leaves your leverage and credit inside the lender’s limits. A ranking cannot answer that. Lendmire is a mortgage broker, not a lender, so it does not name or rank lenders. It works with a network of wholesale HELOC lenders and matches the scenario to the program.
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.
Four tests decide the match:
1. Income acceptance. Will the lender count a signed offer letter at all, or does it want pay stubs from the new employer first?
2. Pay structure. Is the pay a fixed salary, or does it depend on commission, bonus, or hours?
3. Property and occupancy. Is the collateral a primary residence, a second home, or an investment property?
4. Leverage and credit. Do the combined loan-to-value, the credit profile, and the debt-to-income ratio fit the program?
Lenders in the network differ on the first test more than any other. Some will review a file with an offer letter and current pay stubs from the old job. Others want pay history at the new job. Plan for both.
How Does Underwriting Treat an Offer Letter?
An equity line is reviewed on the borrower and the property. A signed letter is evidence of future income, not proof of income received. Some lenders accept it. Many accept it only in narrow cases.
The common sequence on these files looks like this:
1. The lender picks the income evidence. The file typically includes the signed letter, current pay stubs from the old job, and sometimes a verification call or written form to the new employer.
2. The lender reads the letter’s conditions. Contingencies, a probationary period, and a start date after closing all weigh on the file. Some underwriters want the probation period finished before they rely on the pay.
3. The lender reviews the property side. Combined loan-to-value, credit, debt-to-income, title, and valuation all get checked.
4. The lender checks the debt ratio. On this network, the ratio is calculated on the interest-only payment at the maximum draw, not on the balance you plan to use.
That last point trips up borrowers. A line sized for flexibility can fail the ratio because the test assumes you draw the maximum.
The same caution applies to the income step. Purchase-loan rules do not necessarily carry over to an equity line, so confirm the lender’s own policy on offer letters before you apply.
What Should the Offer Letter Say?
A strong letter is signed, names the position and start date, and states base pay as a fixed salary. It has no open contingencies. Ask HR to separate base pay from any bonus, commission, or relocation payment, because lenders usually count only the stable base.
A checklist for the file:
- Signed letter on company letterhead
- Position, start date, and annual base salary
- No pending background check, drug test, or licensing condition
- Probation terms, if any
- Current pay stubs from the job you are leaving
- A second letter if your spouse is also changing jobs, since a spouse’s income needs its own evidence
Variable pay is harder. Bonus and commission before a start date are tough to verify, and lenders usually want a work history on that pay. Self-employed borrowers and those with variable pay usually go through personal income documentation or a bank-statement path rather than a letter.
A relocation lump sum can create its own question. If the employer deposits it into your account, expect the lender to ask where the money came from.
Offer Letter First or Wait for Pay Stubs?
Opening the line first is the better move for a strong, fixed-salary offer in the same field when the line must be open before the old paycheck ends. Waiting suits probation language, variable pay, or an offer that still has conditions.
| Factor | Offer letter first | Wait for first pay stubs |
|---|---|---|
| Income proof | Signed letter plus old-job stubs | Stubs from the new employer |
| Main risk | Lender may not accept the letter | Old income may have ended |
| Best for | Fixed salary, no probation | Probation, bonus or commission pay |
| Lender fit | Narrower set of lenders | Wider set of lenders |
Think about the downside case. If the offer is rescinded, the income behind the file disappears. Tell the lender at once. A line that is already open is a separate matter, but an application in process is not.
How Much Can You Borrow, by Occupancy?
The ceiling depends on how the property is occupied, and it varies enough that one number is never right. Credit requirements also differ by occupancy: 600 for a primary residence, 640 for a second home, and 700 for an investment property.
| Occupancy | Highest CLTV | Credit needed for that tier | Maximum line |
|---|---|---|---|
| Primary residence | 90% | 720+ (up to $500,000) | $500,000 at 90% CLTV; $750,000 at 75% CLTV, 700+ (720 on the longer-runway program) |
| Second home | 90% | 720+ (up to $500,000) | $500,000 |
| Investment property | 70% | 700+ | $500,000 |
Lower credit tiers carry lower ceilings. For example, a primary-residence profile at 680 or 660 reaches 85% CLTV up to $500,000, while a 620 profile sits at 70% up to $400,000. The 90% figure exists only at 720 or better, and it is not generally available. Everything here is subject to lender guidelines and full file review.
Market surveys report that investment-property equity lines can reach 90% loan-to-value with credit scores around 720 and six months of reserves, according to NerdWallet. Those are market-wide figures. On Lendmire’s network, an investment-property line tops out at 70% CLTV, requires at least a 700 credit profile, and caps at $500,000.
A line above $500,000 is for primary residences only. It needs a credit profile of 700 or better (720 on the longer-runway program, one of the two wholesale programs the network uses). It caps at 75% CLTV and requires a full appraisal. Lines at or below $500,000 usually run on an automated valuation, though a higher CLTV can trigger a second look.
How Do the Lines Work After Closing?
These are standalone lines in first or second lien position. Primary residences and second homes can use either of two structures: a 3-year interest-only draw with a 17-year repayment, or a 5-year interest-only draw with a 25-year repayment. Investment lines use the 5-year draw and 25-year repayment only.
At least 75% of the line is drawn at closing. Pricing floats during both the draw and the repayment period and does not convert to a fixed structure. A subsequent draw after closing has a $1,000 minimum on the longer-runway program.
The CFPB explains that a HELOC is a line you can borrow against repeatedly, with a draw period followed by repayment, and that you could lose the home if you cannot repay on schedule. Size the draw for a relocation budget, not for the maximum.
Where the General Rule Breaks
Relocation creates edge cases that a standard HELOC page skips.
The departure home is listed or about to be. A property listed for sale, or listed within the past 60 days, is ineligible in Indiana, North Carolina, Pennsylvania, Tennessee, Texas, and Washington. If you plan to sell, open the line before the listing, and expect a payoff at sale.
The departure home becomes a rental. Renting the home out may be prohibited by the terms of the line, according to the CFPB HELOC booklet. Read the line agreement before turning the home into a rental, and tell the lender what you plan. Occupancy drives the tier, and the investment tier is the strictest on this network.
The property sits in an LLC. An LLC, corporation, partnership, or irrevocable, blind, or land trust cannot hold title on these lines. Only the individual borrower or an inter vivos revocable living trust qualifies. A property already deeded to an LLC needs a vesting change, or a DSCR cash-out refinance instead.
The home is in Texas. A Texas primary residence is a homestead and caps at 80% combined loan-to-value, with a 12-day waiting period and a one-lien-at-a-time rule. Second homes and investment properties there follow the standard tables.
The property type is not eligible. Manufactured homes, co-ops, condotels, log homes, and commercial, mixed-use, or agricultural-zoned property are not offered. Single-family, 2-4 unit, PUD, townhome, and condo (including non-warrantable) properties are eligible.
The borrower is outside the footprint. The HELOC program is available only in Lendmire’s 16 full-service states: AL, CA, CO, FL, GA, IN, MI, MT, NM, NC, OH, PA, TN, TX, VA, and WA. That is narrower than the DSCR footprint of 41 markets, including Washington, D.C. A move across state lines does not change this, since the line is tied to the property you already own.
Credit history carries a seasoning clock. A bankruptcy needs 4 years from discharge or dismissal. Foreclosure-family history splits by program on primary residences and second homes. One program counts a foreclosure after 7 years and a deed-in-lieu, pre-foreclosure, or short sale after 4. The other declines the history regardless of age.
What Happens When the Relocation Includes an Investment Purchase?
The equity line and a later DSCR purchase loan are two approvals judged on different things. The line looks at you and the collateral. The DSCR loan looks at the new property’s rent against its monthly obligation. A job change affects the first file far more than the second. For the full structure of the second loan, see Lendmire’s complete DSCR loans guide.
Three points carry over from DSCR files:
- Most DSCR purchase files land at 75%-80% LTV, and select programs reach 85% LTV at roughly a 700+ score.
- Coverage of 1.00 is where select programs start, not a standard. Select lenders in the network also write below 1.00, with leverage and terms adjusted.
- Clearing 1.00 does not mean positive cash flow. Repairs, vacancy, management, and utilities sit outside the ratio. Each figure is subject to lender guidelines and a complete review of property type, leverage, and credit.
Borrowed down-payment money is a program-by-program question. Many DSCR programs accept borrowed funds for the down payment and closing costs but exclude them from reserves. Reserves commonly run around 6 months of PITIA, and they vary by lender, leverage, loan size, and transaction type. The equity-line payment generally sits outside the DSCR ratio. It still leaves your pocket every month.
Large retail lenders often resist borrowed down payments more than wholesale lenders do. If the departure home is a keeper, a DSCR cash-out refinance on a rental can serve as a separate route. Cash-out tops out around 75% LTV across most of the network on standard rentals, and about 6 months of seasoning is the common expectation. It does not rely on the offer letter at all.
Key Terms Defined
Offer letter: A signed document from the new employer stating position, pay, and start date.
CLTV: Combined loan-to-value, which adds the first mortgage and the new line together and divides by the property value.
Draw period: The stretch when you can borrow from the line, paying interest only on this network.
Probation period: A set period at the start of a job, often tied to continued employment, which some underwriters want finished before they rely on the pay.
Vesting: How title is held. On these lines, it must be an individual or a revocable living trust.
DTI: Debt-to-income ratio, capped at 50% on this network (45% for credit profiles from 600 to 679).
A Decision Path for Relocators
Run through these in order:
1. Confirm occupancy. Is the home your primary residence now, and will it still be after the move?
2. Check the state. Is the property in one of the 16 states, and does a listing rule apply?
3. Check the letter. Fixed salary, signed, no contingencies, no probation? Open the line first.
4. Check the pay type. Bonus, commission, or self-employment? Expect stub history or alternative documents.
5. Check the vesting. Individual or revocable trust? If it is an LLC, plan a different structure.
6. Check the calendar. Will you list the home soon? Open the line before the listing.
A pre-application list for any lender conversation: Does the lender count an offer letter? Does it require the probation period to end? Does it verify with HR before closing? What does it do if the offer is rescinded? Which occupancy and CLTV ceiling applies?
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. Call 828-256-2183 or request a quote at Lendmire’s quote page.
Frequently Asked Questions
Can a new job alone block a HELOC approval?
No. A new job is not an automatic disqualifier. It usually adds paperwork, since a lender swaps one documented income for another. A job loss is harder, because it removes the documented income entirely, so the cleanest window is before the old pay stops.
Does a HELOC move with me to the new home?
No. The line is secured by the home you already own, so it stays with that property. If you sell the home, the line generally must be paid off in full at sale, as the CFPB booklet linked above explains.
Which occupancy tier applies if I keep the old home as a rental?
The investment tier applies once the property is a rental. On this network, that means a 70% CLTV ceiling, at least a 700 credit profile, and a $500,000 maximum. The line terms may also restrict renting, so check the agreement first.
Can the HELOC pay for the down payment on a rental?
Often yes, as a down-payment source on many DSCR programs. Some programs cap the borrowed share, and the strictest want part of the down payment unborrowed. Borrowed money is commonly excluded from reserves, so keep reserves in your own accounts.
What if my employer rescinds the offer?
The income behind the file disappears, so tell the lender immediately. If the line is still in process, the lender will re-review the file. If you want a lender to see both the old income and the new, keep current pay stubs from the old job in the file.
About Lendmire
Lendmire (NMLS# 2371349) is a mortgage broker. Home equity lines of credit — on a primary residence, a second home or an investment property — are arranged through wholesale lenders in Lendmire’s 16 full-service states, and every line is underwritten by the lender under its program guidelines. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. NerdWallet – HELOC on investment property
2. CFPB: What Is a Home Equity Line of Credit 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: Best HELOC Program for a Franchise · Best HELOC Program on a Modest Income · Best HELOC Program for a Lock-in Homeowner
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Disclosures. The information presented in this article is general market commentary, not financial, legal, or tax advice. Lendmire is a mortgage brokerage (NMLS# 2371349) — not a direct lender or depository institution — and loan placement is subject to lender underwriting. Nothing in this content represents a commitment to lend. Loan terms, pricing, and program availability vary based on borrower qualifications, property characteristics, and state of subject property, and are subject to change at any time. Lendmire complies with Equal Housing Opportunity requirements. Consumer access: nmlsconsumeraccess.org.