Your rental qualifies you. Not your paycheck.
Open a home equity line of credit against your investment property using the property's own rental income — no personal income documentation, no DTI limits, and no prepayment penalty.
- Monthly Market Rent $3,200
- ÷ Housing Payment (ITIA) $2,400
Three steps. The property does the qualifying.
No tax returns, no pay stubs, no personal DTI math — just the numbers your rental is already producing.
Tell us about the property
Address, estimated value, current mortgage balance, and the property's market or lease rent. That's the whole intake.
We run the DSCR and your line size
Rent divided by the property's housing payment sets your DSCR. No personal income documentation is used anywhere in this step.
Open the line and draw what you need
30-year variable term with a 3-year draw period, interest-only during the draw. Use it for your next deal, a renovation, or reserves — your call.
Built for landlords, not homeowners.
This is a business-purpose product for investment property. Here's the honest breakdown before you spend time on a form.
You're a strong fit if
- Your property is an investment property with rental income — long-term or short-term
- Your credit score is 700 or higher
- You want an open credit line to draw from, not a one-time lump sum
- You've owned a rental for 12+ months, or you own a primary residence and this would be your first rental
Talk to us first if
- The property is your primary residence or a second home — this program is investment-only
- You're a first-time homebuyer, foreign national, or ITIN borrower
- You'd be vesting in an irrevocable, land, or blind trust
- Your credit file is thin or mostly non-traditional — this program needs standard tradelines
Mitchell Dunn
Loan Strategy Architect · Loan Factory
Licensed to originate in 6 states
Investment property? I can help in more states ›
Business purpose loans (DSCR, DSCR HELOC) don't always require me to be individually licensed in your state — Loan Factory's company license can cover it. Additional states where this applies:
AL, AK, AZ, AR, CO, CT, DE, DC, GA, HI, IL, IA, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NH, NJ, NM, NY, ND, NC, OH, OK, PA, RI, SC, TN, VT, VA, WA, WV, WI, WY
25 years in mortgage. Not a straight line.
I started in this industry in 2000. Somewhere in the middle I stepped away from mortgage entirely and worked in finance for a few years — then came back to it. That gap is part of the resume, not something I leave off it. It's a longer way of saying I've seen this business from more than one angle.
Questions about accessing
your property equity?
Get clear answers about the DSCR HELOC and DSCR 2nd-lien loan options available for investment properties.
Revolving Equity Access
A standalone first-lien HELOC designed to give eligible investors access to property equity through a revolving line of credit.
Keep Your Existing First
A second-lien loan that allows eligible investors to access equity while keeping their existing first mortgage in place.
01 What is a DSCR HELOC?
A DSCR HELOC is a revolving line of credit secured by an investment property.
The program evaluates the property's ability to support its debt obligations using qualifying rental income and other applicable program criteria.
02 What is a DSCR 2nd-lien loan?
A DSCR 2nd is a second mortgage secured by an investment property.
Your existing first mortgage remains in place while the new second lien allows you to access available equity, subject to the program's requirements.
03 What is the difference between the HELOC and the 2nd?
The biggest difference is the lien position and loan structure.
The DSCR HELOC is a standalone first-lien revolving line of credit.
The DSCR 2nd is a second-lien loan that sits behind your existing first mortgage.
04 Can I keep my existing first mortgage?
Yes, with the DSCR 2nd.
Your existing first mortgage can remain in place while the new second lien is added behind it, subject to eligibility and program requirements.
05 How is DSCR calculated?
DSCR stands for Debt Service Coverage Ratio.
It generally compares the property's qualifying rental income to the qualifying debt obligation.
In simple terms, the property needs to demonstrate sufficient cash flow relative to the debt being evaluated.
06 What credit score is required?
Credit requirements vary by product, loan amount, LTV or CLTV, property type, and other qualifying factors.
Your specific scenario should be reviewed to determine which available structure and pricing tier may apply.
07 How much equity can I access?
The amount you may be able to access depends on the property's current value, existing mortgage balance, applicable LTV or CLTV limits, credit profile, and program requirements.
A property valuation and review of the existing liens are typically needed to determine the available amount.
08 What types of properties are eligible?
Eligible property types depend on the specific program.
Qualifying investment properties may include eligible 1-unit and 2–4 unit residential properties, subject to property type, condition, location, valuation, and program guidelines.
09 Can the property be owned in an LLC?
LLC ownership may be permitted depending on the applicable program and entity requirements.
The ownership structure, members, guarantors, and title requirements will be reviewed as part of the loan process.
10 Can I use rental income to qualify?
Yes. The programs are designed around the economics of qualifying investment properties.
Rental income is evaluated according to the applicable program's documentation and underwriting requirements.
11 Can I use short-term rental income?
Short-term rental eligibility depends on the specific product and program guidelines.
Because short-term rental income can be treated differently from traditional lease income, the property and documentation should be reviewed before determining eligibility.
12 Can I use the funds for another investment property?
Investment-property loan proceeds may be used for eligible business purposes, subject to the applicable program guidelines.
If you're accessing equity to acquire another property, fund an investment project, or support another business purpose, we'll review the proposed use of funds as part of the transaction.
13 Is the HELOC revolving?
Yes. The DSCR HELOC is structured as a revolving line of credit.
This means eligible borrowers can access available credit during the applicable draw period, subject to the terms of the program.
14 Is the DSCR 2nd a revolving line of credit?
No.
The DSCR 2nd is a separate second-lien loan. It is designed for investors who want to access equity while keeping their existing first mortgage in place.
15 Do I have to refinance my existing mortgage?
Not necessarily.
The DSCR 2nd is specifically structured to allow an eligible existing first mortgage to remain in place.
A DSCR HELOC is a first-lien product and therefore has a different lien structure.
16 Which option is right for me?
It depends on your existing mortgage, available equity, property value, rental income, credit profile, and how you plan to use the funds.
If you want to preserve an existing first mortgage, the DSCR 2nd may be worth considering.
If you want revolving access to equity through a first-lien structure, the DSCR HELOC may be the better fit.
Still have questions? Let's look at your deal.
Tell us about the property, your existing financing, and what you're trying to accomplish. We'll help identify the structure that makes the most sense.
Explore Your Options
Your property has equity.
Let's put it to work.
Whether you're looking for revolving access to equity through a DSCR HELOC or want to keep your existing first mortgage with a DSCR 2nd, let's look at the numbers and find the structure that fits your investment strategy.
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