Let the rental qualify its own line of credit.

A DSCR HELOC applies the debt-service-coverage idea to a line of credit. The lender reads the rental’s gross rent — the lesser of the lease and the appraiser’s market-rent schedule — and divides it by the qualifying payment: a fully amortizing payment on the entire credit limit at a stress rate two points above the start rate. The ratio must reach 1.10. Your tax returns, W-2s, and debt-to-income ratio never enter the file, which is why the line works for the landlord whose returns understate the business, whose personal ratio is full, or whose rentals sit in an LLC that an income-qualified line would have to deed out.

The line is sized the way every home equity line is: the rental’s value times the combined loan-to-value ceiling for the credit tier and lien position, minus the balance already on the property, capped at the program maximum. Behind a first mortgage the ceiling is 70% at a 720 profile with lines from $50,000 to $500,000; on a rental with no mortgage the line stands first, starts at 700, reaches 75% at 740 on lines to $500,000, and runs to $1,000,000 at 65%. Lines to $400,000 are valued by an automated model with a property inspection report; larger lines take a full interior appraisal. At least 80% of the line, and $50,000, funds at closing; later draws are $5,000 or more; the draw period is five years interest-only, the repayment twenty-five.