Home / HELOC / Rental equity is either a line or a new DSCR loan. Pick on purpose.
Updated September 2026
HELOC guide
Rental equity is either a line or a new DSCR loan. Pick on purpose.
If the rental's first mortgage is cheap, a HELOC in GA, FL, TN, AL, NC, or SC can sit behind it. A DSCR HELOC qualifies on rent, up to $1 million first lien or $500k second. If you want one new loan, or you are outside those states, DSCR cash-out replaces the financing and usually lands around 70 to 75% LTV. Do not run the rental through personal DTI if the rent is the real income. Do not open a primary-home HELOC story on a house a tenant occupies. Send the address, the balance, and the rent.
Sending a file is not an approval and not a credit pull. We text the same business day. We do not call. If we can structure it, we name the door. If we cannot, we say so.
The screen
| Situation | Door |
|---|---|
| Keep a low first, six states | HELOC |
| Rent should qualify | DSCR HELOC |
| One new loan, or outside those states | DSCR cash-out |
| No mortgage | Either, if the state allows the line |
What we fund
- Landlords tapping one house to buy the next
- A paid-off rental
- A first mortgage that should not be touched
What we still need. Short list.
- The first mortgage balance, rate, and whether it can stay.
- A value we can support, and the cash you actually want.
- The property state. HELOC is only GA, FL, TN, AL, NC, and SC.
- Income path: full doc, bank statements, or rent on a DSCR HELOC.
Questions
Can the HELOC be in an LLC?
On screens that allow LLC vesting, yes. Not on every consumer HELOC.
Does the tenant have to leave?
No. Occupancy is whatever it is. Tell the truth.
Which one gives more cash?
Usually the one with the higher LTV on that screen. We calculate both when both exist.
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.