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Updated September 2026

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DSCR or HELOC. Pick the tool, not the slogan.

DSCR is a mortgage on a rental. No tax returns. The rent covers the test, usually around 1.00x, with purchase leverage near 80% and cash-out often 70 to 75%. A HELOC leaves the first mortgage in place and lets you draw equity, often at 80 to 85% combined, interest only on what you use. HELOC only in GA, FL, TN, AL, NC, SC. If the first rate is cheap and the property is in those states, do not kill it with a cash-out. If the property is a rental and you want one loan, DSCR is the file. We run both. We text. We do not call.

Qualify this fileRun the numbers

The screen

DSCR or HELOC. Pick the tool, not the slogan.
DSCRHELOC
What it isMortgage on the rentalLine behind the first mortgage
Income testRent divided by PITIAProgram specific. DSCR HELOC uses cash flow
First mortgageNew loan or cash-outStays
Usual leveragePurchase ~80%, cash-out ~70–75%Combined about 80–85%
Tax returnsNot on standard DSCRNot on a DSCR HELOC

What we fund

  • Rentals that should be a DSCR loan
  • Owners who should keep the first mortgage
  • Investors who need the numbers side by side

What we still need. Short list.

  • Credit is still reviewed. A lower score changes leverage, it does not skip the file.
  • Reserves and down payment, sourced.
  • Appraisal plus a lease, market rent, or a short-term rent schedule.
  • Entity documents if you close in an LLC.

Questions

Can I get both?

Sometimes a DSCR first and a second-lien HELOC, if combined leverage and the guidelines allow it. DSCR HELOC second liens screen up to $500K.

Which one is faster?

Whichever file is complete. We do not promise a 48-hour close.

Is a HELOC a home equity investment?

No. A HELOC is a line you repay. We do not market a no-payment equity share as a HELOC.

Related

These are the guidelines we screen. They are not a promise that your file hits the maximum. Credit-event seasoning, occupancy, and property condition still have to be confirmed. Not a commitment to lend. We text. We do not call.