DSCR Loans

The cash comes out through a home equity loan, a HELOC, or a cash-out refinance — three different structures with different draw and repayment mechanics.

– Leverage caps differ sharply by what secures the line. Investment-property lines run smaller and tighter than primary-residence lines.

– A home equity investment (HEI) trades a lump sum today for a contractual share of a home’s future value or appreciation, settled once — not monthly.

The property’s occupancy — primary residence, second home, or investment — sets the leverage ceiling and the credit floor.

Which one you’re doing changes almost everything: the leverage ceiling, the credit floor, and even who’s allowed to hold title.

Two separate structures hide under that one label. One still measures the borrower’s personal cash flow.

Investment-property lines top out around 70% combined loan-to-value, cap at $500,000, and generally require a 700 credit score.

Expect a lower combined loan-to-value ceiling, a higher credit floor, and a maximum line size well below what a primary-residence HELOC can reach.

The right fit depends on occupancy, how the property is titled, and how much equity a borrower wants to pull without touching an existing first mortgage.

That acquisition loan is usually a DSCR loan, sized to the rental’s own income rather than your personal finances.

Each path gets underwritten on a different set of rules. A line against a primary home leans on personal credit and income.