Unlock Your Home Equity with Figure
- Approval in 5 minutes. Funding in as few as 5 days
- Borrow $20K-$400K
- Consolidate debt or finance home projects
- Fastest way to turn home equity into cash
- 100% online application
This article contains affiliate links. We may receive compensation if you use a partner bank for financing. We never recommend a service we wouldn’t use ourselves. Period.
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.
Looking for alternative investment loan options? Consider a DSCR Loan.
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:
These challenges highlight the need for innovative financing solutions and strategic planning in the real estate investing arena.
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.
To qualify for an Equity Leverage Line, there are specific parameters and requirements to be aware of:
By meeting these criteria, you position yourself for successful approval and maximize the potential benefits of an Equity Leverage Line.
Alabama
HomeEQ
Listerhill CU
Arvest Bank. Can apply in the branches only. States serviced: AR, OK, AL, MO. Max LTV is case-by-case.
Alaska
HomeEQ
Arizona
HomeEQ
WaFd Bank
Bank of the West
Arkansas
HomeEQ
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
HomeEQ
East West Bank
Bank of the West
Colorado
HomeEQ
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
HomeEQ
Delaware
WSFS Bank
HomeEQ
Castle & Cooke Mortgage. Home equity loans only, no lines of credit.
Florida
HomeEQ
Hurst Lending
TD Bank. $25,000-$500,000
Georgia
HomeEQ
East West Bank
Great Lakes CU
Castle & Cooke Mortgage. Home equity loans only, no lines of credit.
Hawaii
Persevere Lending
Idaho
Persevere Lending
HomeEQ
WaFd Bank
Bank of the West
Illinois
Great Lakes CU
Castle & Cooke Mortgage. Home equity loans only, no lines of credit.
Indiana
HomeEQ
Great Lakes CU
Castle & Cooke Mortgage. Home equity loans only, no lines of credit.
Iowa
HomeEQ
Hurst Lending
Great Lakes CU
Kansas
HomeEQ
Bank of Blue Valley
Bank of the West
Kentucky
Great Lakes CU
HomeEQ
Castle & Cooke Mortgage. Home equity loans only, no lines of credit.
Louisiana
HomeEQ
Hurst Lending
Castle & Cooke Mortgage. Home equity loans only, no lines of credit.
Maine
HomeEQ
TD Bank. $25,000-$500,000
Maryland
TD Bank. $25,000-$500,000
HomeEQ
Castle & Cooke Mortgage. Home equity loans only, no lines of credit.
Massachusetts
Bellwether Community CU. These are considered business loans at this bank.
HomeEQ
TD Bank. $25,000-$500,000
Michigan
HomeEQ
West Capital Lending – Team Mann. Bank statement NOO 2nd mortgage to 75% CLTV and $450k. 660 score. Self-employed only.
Minnesota
Citizens Bank Minnesota. NOO HELOCs available in some markets within the state. Typical LTV is 75%.
HomeEQ
Castle & Cooke Mortgage. Home equity loans only, no lines of credit.
Mississippi
HomeEQ
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.
HomeEQ
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.
HomeEQ
Nebraska
HomeEQ
Dundee Bank business services
Bank of the West
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.
HomeEQ
New Jersey
TD Bank. $25,000-$500,000
HomeEQ
Castle & Cooke Mortgage. Home equity loans only, no lines of credit.
New Mexico
HomeEQ
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.
TD Bank. $25,000-$500,000
North Carolina
State Employees CU
HomeEQ
Local Government FCU
Castle & Cooke Mortgage. Home equity loans only, no lines of credit.
North Dakota
HomeEQ
Bank of the West
Ohio
Castle & Cooke Mortgage. Home equity loans only, no lines of credit.
HomeEQ
Oklahoma
Arvest Bank. Can apply in the branches only. States serviced: AR, OK, AL, MO. Max LTV is case-by-case.
HomeEQ
Castle & Cooke Mortgage. Home equity loans only, no lines of credit.
Oregon
Oregonians CU
HomeEQ
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
HomeEQ
Castle & Cooke Mortgage. Home equity loans only, no lines of credit.
Rhode Island
HomeEQ
TD Bank. $25,000-$500,000
Castle & Cooke Mortgage. Home equity loans only, no lines of credit.
South Carolina
HomeEQ
TD Bank. $25,000-$500,000
Castle & Cooke Mortgage. Home equity loans only, no lines of credit.
South Dakota
HomeEQ
Bank of the West
Tennessee
HomeEQ
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
HomeEQ
WaFd Bank
Bank of the West
Castle & Cooke Mortgage. Home equity loans only, no lines of credit.
Vermont
HomeEQ
TD Bank. $25,000-$500,000
Castle & Cooke Mortgage. Home equity loans only, no lines of credit.
Virginia
Signature FCU
HomeEQ
TD Bank. $25,000-$500,000
Fulton Bank
Castle & Cooke Mortgage. Home equity loans only, no lines of credit.
Washington, D.C.
HomeEQ
TD Bank. $25,000-$500,000
Washington State
HomeEQ
WaFd Bank
Bank of the West
West Virginia
HomeEQ
Wisconsin
HomeEQ
Bank of the West
Castle & Cooke Mortgage. Home equity loans only, no lines of credit.
Wyoming
HomeEQ
Persevere Lending
Bank of the West
Self employed? Learn more about bank statement loans.
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.
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.
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.
When purchasing investment properties, cash offers can be a powerful tool in your negotiation arsenal. Here’s how they benefit you:
Using cash gives you a distinct edge, providing flexibility and certainty that financed offers typically lack.
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.
Consider a bridge loan: Learn more about your options in our Bridge Loan vs HELOC guide.
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.
In essence, an Equity Leverage Line empowers investors to expand their holdings efficiently, maintaining their low-interest loans while dynamically utilizing equity.
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.
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.
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.
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.
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.
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:
Through this process, an Equity Leverage Line serves as a versatile financing tool, supporting your strategic real estate endeavors and maximizing your investment potential.
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.
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.
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.
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.
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:
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.
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.
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.
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.
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.
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:
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.
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.
Our advice is based on experience in the mortgage industry and we are dedicated to helping you achieve your goal of owning a home. We may receive compensation from partner banks when you view mortgage rates listed on our website.