Can You Get an Investment Property HELOC When Your Credit Score Is Below 670?

The Quick Read: Usually not, because investment-property lines are a narrow product, and across Lendmire’s wholesale network the minimum credit score on a rental-secured line is 700, with no tier below it. A fair-band score closes the HELOC door well before equity or rent gets a look.

• Investment-line floor: 700 minimum credit score, 70% CLTV ceiling, line size up to $500,000, subject to lender guidelines.
• Rent doesn’t rescue the file: a HELOC is underwritten on the borrower’s credit, debts, and equity, not on whether the rent covers the payment.
• The usual pivot: a DSCR cash-out refinance, where credit floors start around 620 in parts of the network, most programs want about 660, and standard rentals reach roughly 75% LTV.
• A primary-home line is a different product with a lower credit floor, but it carries its own risks if you borrow against the house you live in.

Review details vary by lender, borrower, property, and loan scenario. Nothing here is a commitment to lend.

Why Does a Sub-670 Score Usually End the HELOC Conversation?

A score under 670 sits in the fair band, and investment-property HELOC desks generally draw their lines well above it. Rentals carry more perceived default risk than a primary home, so fewer lenders offer the product and the ones that do qualify strictly.

MyFICO labels 580–669 as “Fair” and 670–739 as “Good,” and it notes that no single minimum score applies to every lender. That matters for how you read the number 670. It is the bottom of a scoring label, not a lending rule. No law sets a minimum score for a HELOC on a rental. Each lender picks its own floor, and for rentals those floors tend to sit higher than the 670 label suggests.

NerdWallet says an investment-property HELOC is possible, but the lender pool is smaller, borrowing is more limited than on a primary home, and qualification is strict because lenders see higher default risk on rentals. It also points to a cash-out refinance as an alternative.

A HELOC also leaves your first mortgage alone. That is its appeal, since you keep the existing loan terms. It is also why lenders look hard at you personally: they are lending behind another lender, and the first mortgage gets paid first.

A BiggerPockets thread on credit scores and HELOCs includes an investor who calls a HELOC on a rental close to impossible below 680, and a banker in the same thread who suggests a cash-out refinance. It is an older, anecdotal discussion, so treat it as color, not data.

What Does the Network Require on an Investment Line?

On an investment property, the network’s home equity line requires a 700 minimum credit score, caps at 70% CLTV, and tops out at a $500,000 line. There is no tier beneath 700 and no extra leverage above it, so a stronger score buys eligibility rather than a higher ceiling.

Here is how the structure fits together, again subject to lender guidelines and full file review:

• Credit: 700 is a hard floor on an investment line. Both a 700 and a 720 profile reach the same 70% CLTV on an investment property.
• Lien position: the line can sit in first or second position.
• Draw structure: investment lines run a 5-year interest-only draw followed by a 25-year fully amortizing repayment. Pricing floats during both periods.
• Valuation: because the line caps at $500,000, it is ordinarily valued by automated valuation rather than a traditional appraisal, though a borrower can request a full appraisal.
• Debt-to-income: the maximum is 50%, and qualification uses the interest-only payment calculated on the maximum draw.
• Title: the property must be held by the individual borrower or a revocable living trust. LLCs and corporations cannot hold title on the line.
• Property types: single-family, 2-4 units, PUDs, townhomes, and condominiums, including non-warrantable ones. Manufactured homes, condotels, log homes, and commercial or mixed-use properties are not offered.
• Availability: these lines are brokered in 16 full-service states, which is narrower than the 41-market DSCR footprint.

The practical takeaway is that 670 does not clear a 700 floor, and neither does 699.

Key Terms Defined

HELOC: a revolving line of credit secured by a property, with a draw period when you borrow and repay, followed by a repayment period. The CFPB’s HELOC explainer notes that the rate is usually variable.

CLTV: combined loan-to-value, meaning all loans against the property, first mortgage plus the line, divided by the property’s value.

DSCR: debt service coverage ratio, which is monthly rent divided by the full monthly PITIA obligation (principal, interest, taxes, insurance, and any association dues).

Fair credit band: the 580–669 range on the FICO scale, one step below the “Good” band that begins at 670.

Second mortgage: a loan secured behind an existing first mortgage. A HELOC on a property that already has a mortgage is one.

What Happens If You Pivot to a DSCR Cash-Out Refinance?

A DSCR cash-out refinance qualifies primarily on property-level rental income covering the payment, subject to lender guidelines, so your personal debt-to-income ratio is not the gate. Credit still matters, but the floors are lower and the structure is different.

Across the network, a 620 credit floor exists in parts of the lender pool, most programs want around 660, and scores of 700 and above unlock the strongest leverage. On a cash-out of a standard rental, leverage tops out around 75% LTV, with roughly six months of seasoning as the common expectation. Cash-out on short-term-rental collateral tops out lower, around 70%. Loan sizes run up to $3,000,000 on standard programs (smaller balances available through select lenders), and above $2,500,000 the network generally holds to 30-year fixed structures.

Coverage works like this. Many select programs start at a 1.00 DSCR, and stronger ratios open better pricing and leverage. A separate select-lender path takes coverage below 1.00, with leverage and terms adjusted. A borrower in the fair-credit band should expect lower leverage and tighter terms than a 740 borrower on the same property.

Reserves vary by lender, leverage, loan size, and transaction type. They are commonly around six months of PITIA, and larger loans step up from there. Conservative rate-and-term files at modest leverage under $1,500,000 can see reserves waived.

One honest caution. Clearing 1.00 is not the same as positive cash flow. DSCR compares rent to PITIA only. Repairs, vacancy, management, utilities, and capital expenses sit outside the ratio. Run those separately before pulling equity.

Here is how the two most relevant paths compare:

Borrowers who plan to hold title in an LLC should know that these deals are reviewed subject to lender program eligibility.

The structural tradeoff is the first mortgage. A HELOC leaves it alone, while a cash-out refinance replaces it, as NerdWallet also notes. An investor sitting on a low-cost first loan should weigh what resetting it costs. If the existing loan is already expensive or near maturity, the reset hurts less. This is where the decision flips: a sub-670 borrower with a favorable first mortgage and a strong income profile might do better to rebuild credit and wait than to refinance out of a good loan.

A Walk-Through: One Investor, Two Doors

Picture an investor with a 655 score who owns a rental through an LLC, has a first mortgage in place, and wants cash for the next purchase.

The HELOC door fails on two counts. The score is below the 700 floor, and the LLC cannot hold title on the line. Either one is enough to stop the file, and fixing the title alone wouldn’t help.

The DSCR cash-out door is at least open to review. Suppose the rent covers PITIA at roughly 1.2x. That clears a 1.00 baseline with room, and a ratio in that range is the kind that supports better terms. At a 655 score, though, expect lenders in the lower-floor part of the network to cap leverage below the 75% ceiling, and to adjust terms accordingly. The file would be reviewed on the property, credit profile, reserves, seasoning, and title structure together. Nothing about it is assured.

Notice what changed between the two doors. The HELOC asked who the borrower is. The DSCR loan asked what the property earns. For an investor with a middling score and a strong rental, that difference decides the outcome.

For more detail, Lendmire’s guide to investment property HELOC requirements when your credit score is below 670 walks through the line’s parameters, and the complete DSCR loans guide covers the DSCR side from the ground up.

Edge Cases Worth Knowing

Your score is exactly 669 or 670. The FICO label changes at 670, but lender cutoffs don’t track the label. On an investment line the floor is 700 either way. Which score gets pulled can also differ by lender: some use the middle of three scores and some use a single bureau. The network’s line programs use a single-bureau score model keyed to the primary wage earner.

A line against your primary home. A primary-residence line is a separate product with a lower floor. The network’s program floor is 600, with DTI capped at 45% for profiles from 600 to 679. Leverage on a primary home rises with credit, and the top 90% CLTV ceiling exists only at a 720-or-better profile. The catch is that the house you live in becomes the collateral for money you invest in a rental. The CFPB’s HELOC booklet warns that your home is the collateral, and it adds that renting out the home may be prohibited under the line’s terms. That is a real risk to put on a roof you sleep under, so it deserves a hard look before you commit.

The property is already in an LLC. A HELOC needs the individual borrower or a revocable trust on title. If the deed sits in an LLC, the choices are a vesting change or a DSCR cash-out, which can often keep the LLC, depending on program guidelines.

Credit unions and community banks. Some smaller institutions write investment lines and flex on policy more than large retail lenders do. Their lines are less predictable, and no one can promise a given score gets through. A lender-side commenter on BiggerPockets says these lines are thinner than primary-home ones, not mythical, and suggests a rent-based second when the HELOC desks pass.

The score is below even the DSCR floors. Below the lowest floors in the DSCR network, the realistic path is to improve the score first. That is a fix-the-file situation, not a loan-selection one.

What Moves a Score, and What a Denial Is Telling You

If a HELOC denial cites credit, the fix is in the report itself. Payment history and revolving utilization carry the most weight in FICO scoring, so on-time payments and lower card balances are the levers that matter. Disputing genuine reporting errors is the other standard step.

If the denial cites debt-to-income, the cure is different. A line is reviewed on your personal obligations, so paying down debt or documenting income helps there. If it cites title, the property needs to move out of the entity, or you need a DSCR structure instead.

A denial that cites equity is the one rent can’t fix. The investment ceiling is 70% CLTV, so a thin-equity property sits outside the line regardless of score. A larger down payment or more equity lowers the payment and can lift a DSCR ratio, but it never erases a credit floor, a reserve rule, or a leverage cap. The strongest files clear both tests: enough equity and enough rental coverage.

Should You Wait, Rebuild, or Move Now?

The decision turns on four things.

• If you want to keep the first mortgage and your score is within reach of 700: rebuilding credit and revisiting a HELOC can make sense, particularly if the line would be a standalone second behind a low-cost first.
• Property in an LLC, multiple rentals, or self-employed income: a DSCR cash-out usually fits better, since it is reviewed on the property and doesn’t depend on personal tax returns.
• Score in the high 500s: neither route is likely, and the work is on the credit file.
• Rent barely covers PITIA: a thin ratio narrows leverage and terms. That is a signal to check the property’s numbers before pulling equity, not a reason to stretch.

This is one place where honest advice differs by investor. A W-2 borrower with one rental and a clean file at 700 may be better served by the HELOC. For a side-by-side look at the two tools, Lendmire’s piece DSCR HELOC vs DSCR Cash-Out Refinance When Your Credit Score Is Below 670 goes deeper.

DSCR loans are designed for non-owner-occupied investment properties. Because they are business-purpose investor loans, they are reviewed differently from a standard owner-occupied mortgage. Short-term rental rules can vary by city, county, HOA, and property type, so investors should confirm local rules before relying on projected rental income.

Next Steps

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.

For an investor whose score sits in the fair band, the useful question is rarely which lender will bend. It is which loan was designed to underwrite the asset you already own.

About Lendmire

Lendmire, NMLS# 2371349, is a mortgage brokerage that arranges home equity lines of credit through wholesale lending partners in its 16 full-service states. Lines on primary residences, second homes and investment properties are each reviewed individually by the lender under the program’s occupancy, credit and combined-loan-to-value guidelines. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.

References

1. myfico.com: Credit Scores

2. NerdWallet

3. BiggerPockets – Credit score in a HELOC

4. CFPB’s HELOC explainer

5. CFPB – What You Should Know About Home Equity Lines of Credit

6. BiggerPockets – HELOCs for investment property