Discovering Investment Property HELOC Lenders in Every State

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Who offers HELOCs on investment properties?

As you already know, it’s much harder to find a home equity line of credit (HELOC) lender for investment properties than it is for your primary residence.

And, most articles on the topic are completely unhelpful. They say “Finding a HELOC for investment property is like finding a needle in a haystack.” Thanks, Sherlock. That’s code for “I didn’t feel like finding rental property HELOC providers in every state.”

Well, we did feel like it. That’s why we’ve done some pretty intense homework to provide you a list of the best HELOC lenders for investment property in every state.

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Common Challenges Faced by Real Estate Investors

Investing in real estate can be highly rewarding, but it often comes with its own set of hurdles. Here are some typical challenges investors encounter when buying, selling, or refinancing properties:

1. Timing the Market:
   • Buying before selling a current property can be a risky game. Many investors find themselves in a bind, trying to secure new opportunities while still waiting for their existing assets to sell.
2. Competitive Bidding Situations:
   • Losing out in bidding wars is a frequent setback, especially in hot markets. When demand outstrips supply, properties can attract numerous offers, driving prices beyond what investors initially anticipated.
3. Financing Roadblocks:
   • Securing a mortgage for a property in need of minor repairs can stifle transactions. Lenders are often hesitant to approve loans for homes that require even modest renovations, creating frustrating delays.
4. Refinancing Restrictions:
   • Obtaining a cash-out refinance, particularly with no seasoning requirements, can be exceptionally tricky. Investors seeking quick liquidity might find conventional loan products unsuitable for their immediate needs.
5. Investment Portfolio Liquidation:
   • Some investors prefer to leverage external funds to keep their current investment portfolio intact. Rather than liquidating other investments, they look for flexible financing solutions that allow rapid property closure without disrupting their financial strategy.

These challenges highlight the need for innovative financing solutions and strategic planning in the real estate investing arena.

Some notes

We weren’t able to find a lender in every state, but we came close. Contact us if you know of an investment property HELOC lender in one of our missing states.

Note: This list is nowhere near exhaustive. There are likely banks and credit unions that are local to you that offer HELOCs on investment properties, but we couldn’t call every bank branch in the country. It’s still worth calling your local bank, forming a relationship, and seeing what they can do for you.

One more note: Some lenders will only do a first-lien HELOC. This means the property has to be owned free and clear, or that the HELOC must replace the existing first mortgage. Most investors want a second-lien HELOC that can be placed on top of their primary mortgage, so we noted whether the bank can only do first liens.

Oh yeah, one more: Lenders may not lend in the whole state. And, banks change their rules often. While we verified their guidelines to the extent possible, we can’t guarantee each lender will always offer rental property HELOCs. Check with each lender on their service area and up-to-the-minute guidelines.

Parameters and Requirements for an Equity Leverage Line

To qualify for an Equity Leverage Line, there are specific parameters and requirements to be aware of:

• Collateral Requirements: You can secure the line using up to four of your investment properties. This means leveraging the equity in your existing real estate holdings.
• Loan Retention: You have the flexibility to maintain your current low-interest loans on these properties, which can help you manage your financial strategy more effectively.
• Credit Score Criteria: A minimum credit score of 680 is essential for eligibility. This credit score threshold demonstrates financial reliability and trustworthiness.
• Eligible Borrower Categories: The equity line is available to individuals, as well as businesses structured as an LLC or a corporation. This offers flexibility depending on your investment structure and financial goals.
• Property Type Acceptance: Eligible properties include single-family residences, multi-unit buildings with up to four units, townhomes, and Planned Unit Developments (PUDs). Ensure your intended property aligns with these categories to meet the guidelines.

By meeting these criteria, you position yourself for successful approval and maximize the potential benefits of an Equity Leverage Line.

Best HELOC lenders for investment property

Alabama
Listerhill CU
Arvest Bank. Can apply in the branches only. States serviced: AR, OK, AL, MO. Max LTV is case-by-case.

Alaska
None known

Arizona
Persevere Lending
WaFd Bank
Bank of the West

Arkansas
Arvest Bank. Can apply in the branches only. States serviced: AR, OK, AL, MO. Max LTV is case-by-case.
Castle & Cooke Mortgage. Home equity loans only, no lines of credit

California
California Coast CU
East West Bank
Bank of the West

Colorado
Persevere Lending
Hurst Lending
Bank of the West

Connecticut
Mutual Security CU. Fixed and variable rate available up to $100,000, 10-15 years terms.
TD Bank. $25,000-$500,000
Castle & Cooke Mortgage. Home equity loans only, no lines of credit.

Delaware
WSFS Bank
TD Bank. $25,000-$500,000
Fulton Bank
Castle & Cooke Mortgage. Home equity loans only, no lines of credit.

Florida
First Choice CU: First lien only (can refi existing 1st mortgage) and max LTV of 60%. 
Hurst Lending
TD Bank. $25,000-$500,000

Georgia
Hurst Lending
East West Bank
Great Lakes CU
Castle & Cooke Mortgage. Home equity loans only, no lines of credit.

Hawaii
Persevere Lending

Idaho
Persevere Lending
Hurst Lending
WaFd Bank
Bank of the West

Illinois
Great Lakes CU
Castle & Cooke Mortgage. Home equity loans only, no lines of credit.

Indiana
Great Lakes CU
Castle & Cooke Mortgage. Home equity loans only, no lines of credit.

Iowa
Hurst Lending
Great Lakes CU

Kansas
Bank of Blue Valley
Bank of the West

Kentucky
Great Lakes CU
Castle & Cooke Mortgage. Home equity loans only, no lines of credit.

Louisiana
Hurst Lending
Castle & Cooke Mortgage. Home equity loans only, no lines of credit.

Maine
TD Bank. $25,000-$500,000

Maryland
TD Bank. $25,000-$500,000
Fulton Bank
Castle & Cooke Mortgage. Home equity loans only, no lines of credit.

Massachusetts
Bellwether Community CU. These are considered business loans at this bank.
East West Bank
TD Bank. $25,000-$500,000

Michigan
West Capital Lending – Team Mann. Bank statement NOO 2nd mortgage to 75% CLTV and $450k. 660 score. Self-employed only.

• Approval in 5 minutes. Funding in as few as 5 days
• Borrow $20K-$400K
• Consolidate debt or finance home projects
• 640+ credit
• 85% max loan-to-value (LTV)
• *We may be compensated if you use this partner’s services through this link

Get Qualified

Minnesota
Citizens Bank Minnesota. NOO HELOCs available in some markets within the state. Typical LTV is 75%.
Great Lakes CU
Bank of the West
Castle & Cooke Mortgage. Home equity loans only, no lines of credit.

Mississippi
Castle & Cooke Mortgage. Home equity loans only, no lines of credit.

Missouri
Arvest Bank. Can apply in the branches only. States serviced: AR, OK, AL, MO. Max LTV is case-by-case.
Great Lakes CU
Bank of the West

Montana
First Security Bank. From the website: “A HELOC can be offered on rental properties.” Communities served: Missoula, Hamilton, Corvallis, Stevensville, Lolo, Thompson Falls and Plains.
Castle & Cooke Mortgage. Home equity loans only, no lines of credit.

Nebraska
Dundee Bank business services
Bank of the West
Castle & Cooke Mortgage. Home equity loans only, no lines of credit.

Nevada
Persevere Lending
East West Bank
WaFd Bank
Bank of the West
Castle & Cooke Mortgage. Home equity loans only, no lines of credit.

New Hampshire
Bellwether Community CU. These are considered business loans at this bank.z
TD Bank. $25,000-$500,000

New Jersey
TD Bank. $25,000-$500,000
Fulton Bank
Castle & Cooke Mortgage. Home equity loans only, no lines of credit.

New Mexico
WaFd Bank
Bank of the West
Castle & Cooke Mortgage. Home equity loans only, no lines of credit.

New York
Quorum FCU – 5 year draw, 10 year repayment. $250k max loan. 1-4 unit, PUD, condo, townhouse.
East West Bank
TD Bank. $25,000-$500,000

North Carolina
State Employees CU
TD Bank. $25,000-$500,000
Local Government FCU
Castle & Cooke Mortgage. Home equity loans only, no lines of credit.

North Dakota
Bank of the West

Ohio
Castle & Cooke Mortgage. Home equity loans only, no lines of credit.

Oklahoma
Arvest Bank. Can apply in the branches only. States serviced: AR, OK, AL, MO. Max LTV is case-by-case.
Bank of the West
Castle & Cooke Mortgage. Home equity loans only, no lines of credit.

Oregon
Oregonians CU
Persevere Lending
WaFd Bank
Bank of the West

Pennsylvania
First Commonwealth Bank – Requests are considered business loans and are handled inside the branches and decided by branch managers. 
TD Bank. $25,000-$500,000
Fulton Bank
Castle & Cooke Mortgage. Home equity loans only, no lines of credit.

Rhode Island
TD Bank. $25,000-$500,000
Castle & Cooke Mortgage. Home equity loans only, no lines of credit.

South Carolina
TD Bank. $25,000-$500,000
Castle & Cooke Mortgage. Home equity loans only, no lines of credit.

South Dakota
Bank of the West

Tennessee
Persevere Lending

Texas
Hurst Lending. Max LTV 60-70%. First-lien HELOC only.
Castle & Cooke Mortgage. Home equity loans only, no lines of credit.

Utah
America First CU
WaFd Bank
Bank of the West
Castle & Cooke Mortgage. Home equity loans only, no lines of credit.

Vermont
TD Bank. $25,000-$500,000
Castle & Cooke Mortgage. Home equity loans only, no lines of credit.

Virginia
Signature FCU
Hurst Lending. Max LTV 60-70%. First-lien HELOC only.
TD Bank. $25,000-$500,000
Fulton Bank
Castle & Cooke Mortgage. Home equity loans only, no lines of credit.

Washington, D.C.
TD Bank. $25,000-$500,000

Washington State
WaFd Bank
Bank of the West

West Virginia
None known

Wisconsin
Great Lakes CU
Bank of the West
Castle & Cooke Mortgage. Home equity loans only, no lines of credit.

Wyoming
Persevere Lending
Bank of the West

Tips to open a HELOC on rental property

Check with business lending: Often, the home mortgage or HELOC department within a bank or branch will tell you they don’t do investment property HELOCs. That likely just means their department doesn’t do them. Call the business side, because many lenders consider these commercial or business loans, not residential.

Form relationships: Call local banks in your area and meet with bankers inside the branch. Describe your needs. Often, the bank can create lending solutions for you based on the fact that they know you and that your business is solid.

Go to the branch: Some of the banks we talked to told us that they only handle investment property HELOC requests inside the branch. Decisions are made by branch managers. Again, your relationship with a branch manager will pay off.

Think local: Many branches only issue investment property HELOCs within a certain number of miles of a branch, or only in certain cities in a state. These are highly local products. Visit bank branches close to your property for best results.

Can You Get a Mortgage for an LLC, and What Should You Consider?

Yes, you can obtain a mortgage for a property owned by a Limited Liability Company (LLC). However, it’s important to weigh the benefits and challenges involved.

Benefits of Mortgaging with an LLC

1. Liability Protection: One of the primary advantages is that an LLC can shield your personal assets from legal claims related to the property.
2. Pass-Through Taxation: Income and losses pass to individual owners, potentially offering tax benefits.
3. Professional Image: Holding property through an LLC can enhance your credibility and professionalism.

Key Considerations

1. Stricter Loan Requirements:
   • Lenders typically require higher down payments for LLCs, often around 20% or more.
   • Interest rates might be higher compared to personal mortgages due to increased risk perception.
2. Limited Loan Options:
   • Not all lenders offer LLC mortgages, so your options may be limited.
   • Consider regional banks, credit unions, or online lenders specializing in business loans.
3. Credit Implications:
   • Your personal credit score might still play a crucial role, as lenders often require personal guarantees.
4. Complex Process:
   • Prepare for a more intricate application process with additional documentation, such as LLC operating agreements.

Before proceeding, consult with a real estate attorney or financial advisor to determine if an LLC mortgage aligns with your investment goals. Exploring alternative strategies for asset protection might also provide additional financial advantages.

Advantages of Using Cash Offers for Investment Properties

When purchasing investment properties, cash offers can be a powerful tool in your negotiation arsenal. Here’s how they benefit you:

• Stronger Negotiating Position: Cash offers can make your proposal more appealing to sellers, as they often see these offers as more reliable. Without the complexity and uncertainty of financing contingencies, your offer is more straightforward and attractive.
• Speedier Transactions: With cash deals, the process moves faster. This can be crucial in competitive markets, allowing you to close on properties quickly without waiting for loan approvals and the associated paperwork.
• Increased Odds of Acceptance: Sellers may prefer your cash offer over others that rely on bank loans, even if those offers are for higher amounts. The assurance of a quick and uncomplicated sale can prompt sellers to choose your offer.
• Potential for Better Pricing: Because of the certainty and speed of cash offers, sellers might be willing to negotiate the price down, leading to a more favorable purchase price for you.
• Elimination of Loan Costs: By bypassing the loan process, you avoid interest, application fees, and other related expenses, allowing you to invest those savings elsewhere.

Using cash gives you a distinct edge, providing flexibility and certainty that financed offers typically lack.

Rental property HELOC alternatives

HELOC on your primary home: Tap into up to 100% of your home’s value via a HELOC. (We made a state list for this product, too.) Use those funds to update a rental or buy another one.

Get a cash-out refinance on the rental: Most lenders offer a standard cash-out refinance on rental properties. The drawback, though, is that you have to replace your existing first mortgage, which might have a low rate. Plus a full refinance comes with high closing costs.

Cross collateralization: Banks may allow you to open a line of credit secured by your entire rental portfolio instead of just one property. This is considered a business loan, so ask for the right department when you call a bank or credit union.

Unlocking Equity: How an Equity Leverage Line Works

An Equity Leverage Line offers real estate investors a flexible way to tap into their property’s equity without disturbing existing favorable loan terms. Let’s break down how this innovative financial tool operates and benefits investors.

Leverage Without Refinancing

1. Leverage Existing Equity: The Equity Leverage Line uses your current properties’ equity, specifically those you don’t live in, as collateral. This means you aren’t required to refinance or alter the low interest rates on your existing loans.
2. Access to Funds: Think of it as a specialized line of credit. This line lets you access funds when you’re ready to invest in additional properties. You don’t start making payments until you actually use the funds.
3. Use for Investment Properties: The funds obtained through this line are earmarked for acquiring more non-owner-occupied properties. This cycle enables you to expand your investment portfolio strategically.

Flexible Funding Structure

• Property Portfolio Collateral: You can tie up to four of your non-owner properties into a single line. The value of these properties determines the credit available to you.
• Lien Flexibility: When you decide to use the funds, a lien is placed on the new investment property. This can be in either first or second position, ensuring flexibility.
• High Funding Potential: With adequate credit, it could cover up to 100% of your new property’s purchase price, giving you room to invest aggressively.

Repayment and Reinvestment

• One-Year Repayment Term: After utilizing the funds, you have a year to repay. This payment can be made by selling the newly acquired property or refinancing it into a long-term loan.
• Continuous Investment Loop: Upon repaying the credit line, the lien is released. This feature allows you to reinvest the funds repeatedly, creating a cycle of growth for your real estate portfolio.

In essence, an Equity Leverage Line empowers investors to expand their holdings efficiently, maintaining their low-interest loans while dynamically utilizing equity.

Maximizing Opportunities with an Equity Leverage Line

In today’s fast-paced real estate market, having access to flexible financing solutions can be the difference between securing a deal and watching it slip away. Here’s how savvy investors are successfully using an Equity Leverage Line to amplify their investment strategies.

Acquiring and Rehabbing Properties

Consider a real estate investor eyeing a dilapidated property with strong potential. By tapping into an Equity Leverage Line, they can fund up to 100% of the purchase and renovation costs. Post-renovation, the investor has options: sell the rehabilitated property for a profit or refinance to secure more favorable long-term terms. This strategy often turns a fixer-upper into a lucrative asset.

Securing Below Market Value Deals

Imagine a scenario where an investor finds a property listed below market value. Quick, decisive action is required to secure such deals. With an Equity Leverage Line, the investor can make a competitive cash offer, which sellers often prioritize over those requiring lengthy financing approvals. Once the deal closes, the investor can refinance using the enhanced market value of the property, minimizing their cash outlay.

Buying Property Portfolios

Another strategic use involves acquiring a portfolio of properties from a single seller. Sellers are often more willing to negotiate when they can offload multiple assets in one transaction. An Equity Leverage Line provides the ability to finance 100% of such a portfolio, enabling the investor to purchase multiple properties at potentially reduced rates — all in one go.

Closing Deals with Cash Offers

Lastly, in highly competitive markets, having the ability to present a cash offer sets investors apart. This can be especially effective in situations where other offers are tangled in financing contingencies. By utilizing an Equity Leverage Line, investors can confidently make cash offers, securing priority over other bidders and often achieving more favorable terms.

Incorporating these tactics can significantly elevate an investor’s ability to navigate and succeed in dynamic real estate landscapes.

How to Apply for and Use an Equity Leverage Line

Are you considering capitalizing on an Equity Leverage Line to finance your property investments? Here’s a step-by-step guide to understand the process and maximize the benefits:

1. Apply for the Equity Leverage Line
   Begin by submitting an application to obtain an Equity Leverage Line. This step involves providing financial details and documentation to ensure you meet the necessary criteria for approval.
2. Sign the Required Documentation
   Upon approval, you’ll need to review and sign the necessary legal paperwork. This formalizes your access to the line of credit, allowing you to move forward with your investment plans.
3. Use the Funds to Acquire New Property
   With your line of credit approved, you can now purchase a new property, covering up to 100% of the acquisition cost. This gives you a significant advantage in securing real estate investments without the need for upfront capital.
4. Enhance and Optimize the Property
   Invest in renovations or improvements to increase your property’s value. Once enhanced, you have the flexibility to either sell it for a profit or rent it out for ongoing income.
5. Refinance for Long-Term Ownership
   If you decide to retain the property as a long-term asset, refinancing into a traditional long-term loan can be a wise step. This transition can help reduce the cost of capital and lock in more favorable terms.
6. Unlock Your Equity Leverage Line
   After selling the property or completing a refinance, the funds from your Equity Leverage Line become available once again. This opens the door to future investments, enabling you to continue building your property portfolio.

Through this process, an Equity Leverage Line serves as a versatile financing tool, supporting your strategic real estate endeavors and maximizing your investment potential.

How an Equity Leverage Line Can Expand Your Investment Property Portfolio

An Equity Leverage Line is a powerful financial tool designed to help investors like you grow your property portfolio. By tapping into the equity of up to four existing investment properties, this line of credit enables you to purchase additional non-owner-occupied investment properties.

Targeted Investment

Unlike general Home Equity Lines of Credit (HELOCs), which offer flexibility for a variety of expenses, an Equity Leverage Line is tailored specifically for property investment. The funds are dedicated exclusively to acquiring new investment properties, ensuring that your capital is focused on portfolio expansion.

100% Purchase Power

One of the standout features of an Equity Leverage Line is its potential to cover 100% of the purchase price of a new investment property. This allows investors to maximize their buying power without tying up other capital. Essentially, it transforms existing equity into a direct investment in new income-generating assets.

Strategic Growth

This approach can significantly accelerate the growth of your investment portfolio. By strategically leveraging your existing assets, you can swiftly acquire new properties, thereby increasing your rental income and potential capital gains. The targeted nature of the Equity Leverage Line aligns perfectly with investors who are looking to scale their operations efficiently.

In summary, an Equity Leverage Line not only unlocks the potential of your existing property equity, but it also streamlines the investment process, enabling quick and effective portfolio expansion.

How to Use an Equity Leverage Line to Acquire a Portfolio of Properties

Purchasing a portfolio of properties from a single seller can be an effective strategy, especially when aiming to obtain them below market value. An Equity Leverage Line can be a powerful tool in facilitating this process. Here’s how:

Single Buyer Advantage

Property sellers often prefer to deal with one buyer for multiple properties. Why? It’s simpler and more convenient. This preference can work to your benefit, as sellers might be open to negotiating lower prices when they can sell their portfolio all at once.

Funding Entire Portfolios

With an Equity Leverage Line, you can finance the entire portfolio in one go. This solution offers the seller the chance to cash out swiftly, which is often a strong incentive for price negotiations. As a buyer, you gain the convenience of acquiring a group of properties simultaneously, streamlining the acquisition process.

Key Benefits

• Negotiation Power: By purchasing in bulk, you increase your bargaining leverage, potentially securing properties at discounted prices.
• Speed: The ability to fund the entire portfolio promptly ensures quicker transaction times and minimizes delays.
• Efficiency: Simplifies the buying process by reducing the need for multiple negotiations and separate financing for each property.

By utilizing an Equity Leverage Line, you can capitalize on these advantages, making it an ideal choice for investors looking to expand their real estate holdings efficiently.

How Investors Can Leverage an Equity Line to Snag Below-Market Deals

Securing properties below their market value is a dream scenario for investors. Here’s a strategic approach using an Equity Leverage Line to make it happen.

Steps to Success

1. Target Rapid Sales:
   Properties priced below market value often require a swift purchase. Sellers in a hurry might list their properties lower to guarantee a fast sale, creating an opportunity for investors.
2. Utilize Cash Offers:
   Cash offers are enticing to sellers, often beating out traditional financing methods. Investors can use their Equity Leverage Line to present a compelling cash offer, increasing the chances of securing the property.
3. Finance the Purchase:
   With the Equity Leverage Line, investors can finance 100% of the property purchase. This means there’s no initial need to dip into personal funds, making the investment more accessible and less risky.
4. Refinance Strategically:
   After purchasing, investors can turn around and refinance the property based on its true market value. This refinance can significantly lower the amount of initial capital tied up in the deal.

By following these steps, investors harness the power of an Equity Leverage Line to effectively buy properties below market value, optimizing their investment portfolio with minimal out-of-pocket expenses.

Maximizing Property Investment with the Equity Leverage Line

If you’re eyeing a property that needs a little TLC, the Equity Leverage Line can be your go-to financial tool. Here’s how it supports your rehab journey:

• Comprehensive Funding: The Equity Leverage Line provides you with the necessary funds not just to purchase the property, but also to cover the rehabilitation expenses. With the ability to lend up to 100% of the loan-to-cost, your out-of-pocket expenses can be significantly reduced, allowing you to focus on the renovation process.
• Flexibility and Options: Once the rehab is completed, you have the flexibility to either sell the property for a profit or refinance it into a long-term mortgage solution. This versatility can help optimize your investment strategy, whether you’re flipping the property or turning it into a rental.

By offering both the financial means for purchase and renovation, and the strategic options post-rehab, the Equity Leverage Line positions investors to effectively transform distressed properties into valuable assets.

Need help finding an investment property HELOC lender?

Finding an investment property HELOC is no easy task. Go to the link below if you need some help and we’ll see what we can do.