The Quick Read: A twenty-year repayment term is a market convention rather than a rule, so the provider that fits you depends on draw structure, property type, credit profile, and leverage need, and the lines Lendmire brokers through its wholesale network use 17-year or 25-year repayment windows instead. Lendmire is a mortgage broker, not a lender, and it names no lenders and publishes no ranking. What follows explains how these lines work and how to judge any provider’s version.
- On the network’s equity lines, the repayment window is 17 or 25 years, depending on the draw structure.
- An investment property tops out at 70% CLTV with a 700 minimum credit score.
- Primary residences and second homes can reach 90% CLTV, but only at a 720-or-better credit profile.
- Title must sit with an individual or a revocable living trust, so LLC-owned rentals are out.
- When a line does not fit, a DSCR cash-out refinance is the usual alternative for a rental.
Why There Is No Ranked List Here
A ranked list of providers would be wrong for most readers, because the best program for your situation changes with the property, the credit profile, the equity, and the documentation you can show.
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.
Lendmire works across a network of wholesale HELOC lenders. A single lender can only describe its own program. So this article does not tell you who to call first. It tells you what these lenders look for, how the programs operate, and which questions separate a good fit from a bad one.
Equity lines through this network are available in 16 full-service states. That footprint is narrower than Lendmire’s 41-market DSCR platform, so confirm availability before you plan around a line. Program details can change, and each file is reviewed on its own, subject to lender guidelines. Nothing here is a commitment to lend.
What a Twenty-Year Repayment Term Actually Means
A HELOC is revolving credit secured by property. It runs in two phases: a draw period when you borrow, and a repayment period when you pay the balance down.
The twenty years belongs to the second phase only. Experian notes that a draw period typically lasts five to 10 years, followed by a 20-year repayment period. It also says the length varies by lender. ConsumerAffairs describes the same pattern: a typical 10-year draw with a 20-year repayment period.
That means the full commitment is the draw period plus the repayment period. A 10-year draw followed by 20 years of repayment is a 30-year relationship with the lender.
The step-by-step sequence looks like this:
1. Application. The lender sets a credit limit from the property’s value, the existing mortgage balance, and your credit profile.
2. Draw period. You borrow against the line. Payments during this phase are often interest-only.
3. Conversion. The line closes to new draws. Payments now include principal and interest.
4. Repayment period. The remaining balance amortizes over the stated term.
5. Payoff. The balance reaches zero, or a balloon comes due if the agreement was written that way.
Experian also points out that some lines carry a balloon payment, which means the whole balance is due when the draw period ends. So a twenty-year repayment term is something to confirm in the line agreement. Do not assume it.
How the Network’s Programs Are Structured
Two draw structures exist on primary residences and second homes. The three-year-draw program pairs a 3-year interest-only draw with a 17-year fully amortizing repayment. The five-year-draw program pairs a 5-year interest-only draw with a 25-year fully amortizing repayment. Investment-property lines use the five-year-draw structure only. In Tennessee, both windows are shorter: 3 years and 12 years on the three-year program, and 5 years and 10 years on the five-year program.
Neither structure has a 20-year repayment term, in Tennessee or anywhere else. If the 20-year figure is a hard requirement for you, say so early. A broker can then tell you whether this network fits or whether a different product does.
Three other features shape every line in this network:
- Substantial draw at closing. At least 75% of the line is drawn when the loan funds. This is not a pure standby line that sits unused.
- Floating pricing. Pricing floats through both the draw and repayment periods and never converts to fixed.
- First or second lien. The line is a standalone product and can sit in first or second position.
The combination matters. A large initial draw on a floating-price line means the balance at conversion can be close to the original draw. The payment then steps up when interest-only ends. The step-up is the main risk in the product, and it is the reason to read the draw and repayment structure before you compare anything else.
Underwriting Step by Step
Underwriting here is personal-credit underwriting, not rent-based underwriting. The steps run in this order.
Step one: occupancy and credit. Occupancy sets the ceiling. The table below shows the network’s maximum CLTV by occupancy, subject to lender guidelines.
| Occupancy | Minimum credit | Top CLTV | Max line |
|---|---|---|---|
| Primary residence | 600 | 90% at 720+ | $500,000 at 90% CLTV; $750,000 at 75% CLTV, 700+ (720 on the longer-runway program) |
| Second home | 640 | 90% at 720+ | $500,000 |
| Investment property | 700 | 70% | $500,000 |
Those top tiers are not the typical outcome. On a primary residence, a 700 profile reaches 85% CLTV up to $500,000, and 75% up to $750,000. A 640 profile on a primary residence reaches 80%, and a 620 profile reaches 70%. Lower scores carry lower ceilings. Investment lines have no tier above 70%.
NerdWallet reports that an investment-property HELOC can be harder to get because lenders see higher default risk, and that some lenders restrict by location or by whether the home is rented all year. In this network, an investment line needs at least a 700 score and caps at 70% CLTV.
Step two: debt-to-income. The maximum DTI is 50%, or 45% for credit profiles from 600 to 679. A ratio above 45% requires a 680 minimum. The payment used in qualifying is the interest-only payment on the maximum draw, not the amortizing payment that follows.
Step three: valuation. 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 requires a full appraisal, and any borrower may request one.
Step four: credit file. The program uses a single-bureau score keyed to the primary wage earner. The report must be no more than 90 days old at closing, and there are no rescores. Tradeline and housing-history standards vary by program. The five-year-draw program asks for two tradelines seasoned 12 months or one seasoned 24, with a clean mortgage-payment history across all financed properties.
Step five: derogatory history. A bankruptcy needs 4 years of seasoning from discharge or dismissal. Foreclosure history splits by program. One program seasons a foreclosure at 7 years and a deed-in-lieu, pre-foreclosure, or short sale at 4. The other declines the history entirely, regardless of age. Investment files follow the 7-and-4-year path.
Step six: property and title. Eligible property types include single-family homes, 2-4 units, PUDs, townhomes, and condominiums, including non-warrantable ones. Modular factory-built homes are eligible on the five-year-draw program only. Manufactured homes, co-ops, condotels, log homes, commercial, mixed-use, and agricultural-zoned property are not offered.
Federal rules also require lenders to hand HELOC applicants a standard consumer booklet. The CFPB says creditors must provide it under 12 CFR 1026.40(e). That is a disclosure rule, and it does not change how the file is underwritten.
Where the General Rule Breaks
Several situations break the usual pattern, and a rental portfolio can run into more than one of them.
Title held by an LLC. This is the sharpest structural difference from a DSCR loan. Title must be held by the individual borrower or a revocable living trust. LLCs, corporations, partnerships, and irrevocable, blind, or land trusts cannot hold title. A property already deeded to an LLC needs a vesting change, or a DSCR cash-out instead, subject to program terms.
Lines above $500,000. These are available on primary residences only. They cap at 75% CLTV and need a full appraisal. The credit requirement is a 700 profile or better, and 720 on the five-year-draw program.
Portfolio size. A borrower is limited to three lines in total. A borrower who owns more than 15 financed properties is not eligible. A larger portfolio fits a rent-based loan better than a line underwritten on personal debt ratios.
Sub-640 profiles. These are limited to single-family residences with a clean 12-month housing history under the five-year-draw program. Because second homes floor at 640 and investment lines at 700, that restriction reaches primary residences only.
Recently listed property. In NC, PA, TN, TX, and WA, a property listed for sale, or listed within the past 60 days, is ineligible. New Mexico and Ohio cap CLTV based on the credit profile. A Texas primary residence caps at 80% combined loan-to-value.
Smaller minimums. The line size runs from $25,000 to $750,000, with a Michigan floor of $10,000. After closing, the minimum subsequent draw is $1,000, except in Texas, where it is $4,000. That minimum is stated by the five-year-draw program only.
Lenders that won’t write rentals at all. Some lenders do not offer lines on investment properties. White Coat Investor says qualifying for an investment-property HELOC is often harder and fewer lenders offer one. A broker with a wide network covers that gap by placing the file only with lenders whose guidelines fit.
When a DSCR Cash-Out Refinance Fits Better
A DSCR cash-out refinance replaces the first mortgage and qualifies primarily on property-level rental income covering the payment, subject to lender guidelines. A HELOC leans on personal debt-to-income. NerdWallet frames a DSCR loan as a way to measure how well a property’s rent covers its payments, and suggests it may fit when you rent the property out. The complete DSCR loans guide covers the full mechanics.
The common program ranges across the network are these, always subject to lender guidelines:
- Cash-out leverage. On a standard rental, cash-out reaches about 75% LTV, with roughly 6 months of seasoning expected.
- Coverage. A 1.00 coverage ratio is where select programs start. A separate select-lender path takes coverage below 1.00, with leverage and terms adjusted.
- Credit. A 620 floor exists in parts of the network, most programs want around 660, and 700 or better opens the strongest leverage tiers.
- Loan size. Standard programs reach up to $3,000,000, with smaller balances available through select lenders.
- Reserves. They vary by lender, leverage, size, and transaction. About 6 months of PITIA is common.
- Title. Subject to program terms, an LLC can hold title on a DSCR loan, which an equity line does not allow.
A caution on reading the ratio: a coverage number of 1.00 or higher compares rent to PITIA only. It does not equal positive cash flow, because repairs, vacancy, management, and capex sit outside the calculation.
A line and a cash-out are not rivals so much as different tools. A line suits an investor who holds a personal-name rental or a primary residence with equity, wants flexible access, and accepts a floating balance. A cash-out suits an investor who wants to restructure the first mortgage, hold title in an entity, and underwrite on the property’s income. Lendmire’s piece Best Investment Property HELOC Program With a Twenty-Year Repayment Term covers the investment-line angle in more depth.
Choosing Between the Two Draw Structures
Consider an investor with a 720 score and a rental in their own name. The 5-year draw with 25-year repayment is the only structure available on that investment line, and the ceiling is 70% CLTV. The investor’s real decision is whether to hold the balance through the draw period or pay it down early, since the floating price carries through the whole term.
Now consider a borrower with a 720 score on a primary residence. Here both structures exist. The 3-year draw with 17-year repayment pushes principal payments to start sooner. The 5-year draw with 25-year repayment keeps payments lower for longer, but the total commitment runs longer too. Neither is better in the abstract. The better fit depends on how much of the balance the borrower expects to carry when interest-only ends.
Suppose the plan is to use proceeds toward a down payment on another rental. A line on the property you already own adds leverage on it, and that balance has to be cleared before a later cash-out refinance on the same property. The line therefore suits that plan only if you can repay it before refinancing.
Before committing, ask these questions of any provider:
- What are the draw and repayment lengths, and is there a balloon?
- Does the price float, or can it convert to fixed?
- What share of the line must be drawn at closing?
- Are there prepayment or early-closure fees? Benzinga notes that some lenders charge a penalty for early repayment.
- Can the lender freeze or reduce the line if values fall?
- Does the lender write on this occupancy, property type, and title?
Key Terms Defined
Draw period: The early phase of a line, when you can borrow and repay and payments are often interest-only.
Repayment period: The later phase, when draws stop and the balance amortizes over a set term.
CLTV: Combined loan-to-value, which adds the new line to any existing mortgage and divides by the property value.
Balloon payment: A lump sum that is due in full when the draw period ends.
DSCR: Debt service coverage ratio, which divides monthly rent by the monthly PITIA on the property.
PITIA: Principal, interest, taxes, insurance, and any association dues, all on one monthly obligation.
Frequently Asked Questions
Which providers offer a HELOC with a twenty-year repayment term?
The term varies by lender, and market sources describe 20 years as typical rather than universal. The network Lendmire places files with uses 17-year and 25-year repayment windows. Lendmire does not rank or name lenders, so the practical step is to bring the scenario to a broker who can compare guidelines across several lenders.
Can I get this kind of line on a rental I own through an LLC?
Not directly. These lines require title held by an individual or a revocable living trust. A property already deeded to an LLC needs a vesting change, or a DSCR cash-out refinance instead, subject to program terms and lender review.
What is the maximum leverage on an investment-property line?
On an investment property, the network ceiling is 70% CLTV, with a 700 minimum credit score and a maximum line of $500,000. The 90% CLTV tier exists only on primary residences and second homes, and only at a 720-or-better profile.
What happens when the draw period ends?
The line closes to new draws and the payment steps up to include principal. On the network’s structures, that is after 3 or 5 years, followed by a 17-year or 25-year amortizing period. Because pricing floats and never converts to fixed, the payment can also move with the market.
When does a DSCR cash-out refinance make more sense than a HELOC?
It tends to fit when the rental is held in an LLC, the investor owns several financed properties, or personal debt ratios would limit a line. The cash-out reaches about 75% LTV on a standard rental, subject to lender guidelines, credit review, and property eligibility.
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. You can also review Lendmire’s piece Best HELOC Program With a Twenty-Year Repayment Term before you start. The site’s illustrative calculator gives an estimate only, and every file is reviewed individually.
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.
Get Started
Ready to find the right loan for you?
See your offer in seconds. No credit pull, no obligation.
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
1. Experian — What Is a Draw Period on a HELOC
2. ConsumerAffairs — HELOC Draw Period
3. NerdWallet — Can You Get a HELOC on an Investment Property
6. NerdWallet — HELOC on an Investment Property, DSCR Alternative
7. Benzinga
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: Top DSCR HELOC Providers on an Inherited Rental With Tenants in Place · Top DSCR HELOC Providers for First-Time Investors · Top DSCR HELOC Providers for BRRRR Investors Funding the Rehab
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
- Mortgage Loan Originator · NMLS# 1129696 · Verify on NMLS Consumer Access
- North Carolina Real Estate Broker · License# 343312 · Verify on NCREC
- North Carolina Insurance Producer · License# 19053198 · Property, Casualty, Life, Health · Verify on NAIC SBS
- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
Legal disclosures. Lendmire (NMLS# 2371349) is a state-licensed mortgage brokerage that arranges financing through wholesale lender relationships. Lendmire is not a direct lender, depository institution, or registered financial advisor. The discussion above is general informational content about real estate financing — it is not financial, legal, or tax advice, and readers should consult licensed professionals for guidance on their individual circumstances. Loan inquiries are subject to lender underwriting; this article does not represent a commitment to lend. Loan terms, rates, and qualification standards vary by borrower, property, and state, and are subject to change at any time. Equal Housing Opportunity. NMLS Consumer Access: nmlsconsumeraccess.org.