Unlock Rental Equity Without Touching Your 1st Mortgage
Access up to $500k in Fixed HELOANs or $2.5M in Revolving HELOCs on investment properties. Qualify using property cash flow—no tax returns, no W-2s, and no personal DTI calculations required.
See DSCR HELOC & HELOAN Options for Your Property
Extract equity without touching your low 1st mortgage interest rate — no credit impact, no obligation
HELOC / HELOAN Metrics Received!
Mitchell Dunn is running your property equity figures across 240+ wholesale lender matrices. Expect a call shortly with exact credit line limits, combined LTVs, and rate options.
Understanding DSCR HELOCs & HELOANs
What Is a Standalone Investor 2nd Lien?
A DSCR HELOC or HELOAN is a standalone second mortgage secured by your rental property. It allows you to access your equity without refinancing or disrupting your existing low-rate primary mortgage.
Instead of evaluating tax returns, W-2s, or personal debt-to-income (DTI) ratios, lenders qualify the loan based on the rental property's cash flow (DSCR).
Equity Strategy: Preserve 3-4% Primary Rates + Access Capital to Scale.
Why Real Estate Investors Choose DSCR 2nd Liens
Protect Low 1st Mortgage Rates
Keep your existing 3-4% primary or 1st lien mortgage intact while pulling equity in 2nd position.
Zero Income Documentation
Qualify strictly on subject property rental cash flow without providing tax returns, W-2s, or bank statements.
Revolving Line or Fixed Term
Choose a flexible 3-5 year draw HELOC for ongoing deals or a fixed-rate 2nd mortgage for lump-sum cash out.
Up to 80% Combined LTV
Access high-leverage equity up to $500k for Closed-End Seconds or up to $2.5M for Revolving Credit Lines.
LLC & Entity Vesting
Close directly in your LLC, S-Corp, or Partnership to maintain asset protection and business purpose structure.
DSCR HELOC & HELOAN Eligibility
Check if your investment property qualifies for standalone 2nd lien equity access. A quick review verifies leverage, cash flow, and line limits with no obligation.
Eligible Property Types
Single-family residential rentals (SFR), 2-4 unit properties, PUDs, warrantable condos, and 5-8 unit commercial residential assets.
Combined LTV Leverage
Access leverage up to 75%–80%+ CLTV across your existing 1st mortgage and new 2nd lien.
Flexible Loan Sizing
Line amounts from $75,000 to $500,000 for Closed-End Seconds, and up to $2,500,000 for Revolving HELOCs.
Credit Profile
Minimum credit scores typically start at 680 to 700 FICO depending on program leverage and line size.
Debt Coverage (DSCR)
Qualified using gross rental income vs total housing payment, with minimum ratios starting at 1.00x DSCR.
Vesting & Business Purpose
Business-purpose 2nd liens funded directly in LLCs, S-Corporations, Partnerships, or Individual names.
How DSCR HELOCs & HELOANs Work
Step 1
Submit Property Details
Provide your rental address, estimated value, current 1st mortgage balance, and monthly rental income for a fast equity review.
Step 2
Property Cash Flow Review
We verify your Debt Service Coverage Ratio (DSCR) based strictly on property rental income versus total monthly housing payments.
Step 3
Select HELOC or HELOAN
Choose between a flexible 3–5 year draw HELOC line of credit or a fixed-rate lump-sum Closed-End 2nd Mortgage.
Step 4
Fund & Scale Portfolio
Close in 2nd position, access your capital, and fund your next deal while leaving your 1st mortgage's low interest rate intact.
Frequently Asked Questions
Clear answers to help you access equity from your investment properties.
Q. Can I get a HELOC or 2nd mortgage on a rental property?
Yes! Standalone DSCR HELOCs and Closed-End Seconds (HELOANs) allow real estate investors to tap equity from investment properties in 2nd lien position without refinancing or altering their low 1st mortgage interest rate.
Q. Do I need tax returns or W-2s to qualify?
No. Qualifications are based strictly on subject property rental cash flow (DSCR) rather than tax returns, pay stubs, W-2s, or personal debt-to-income (DTI) calculations.
Q. What is the difference between a DSCR HELOC and a HELOAN?
A DSCR HELOC is a revolving line of credit with a 3-to-5-year draw period where you can draw, pay down, and re-draw funds as needed. A Closed-End HELOAN is a fixed-rate, lump-sum 2nd mortgage with structured 15, 20, or 30-year amortizing monthly payments.
Q. How much equity can I draw with a DSCR 2nd lien?
Line amounts range from $75,000 up to $500,000 for Closed-End Seconds and up to $2,500,000 for Revolving HELOCs, up to a maximum 80% Combined Loan-to-Value (CLTV).
Q. Can I close the loan in an LLC or business entity?
Yes. Business-purpose DSCR 2nd liens allow vesting directly in an LLC, S-Corporation, or Partnership provided personal guaranties are provided by entity owners.
Q. What property types qualify for investor equity lines?
Eligible properties include single-family residential rentals (SFR), 2-4 unit properties, PUDs, warrantable condos, and 5-8 unit commercial residential properties.
Why Investors Work With Loan Factory
Loan Factory helps real estate investors compare DSCR HELOC & HELOAN options across 240+ wholesale lenders, ensuring maximum leverage without refinancing low 1st rates.
See how much equity you can pull with a DSCR HELOC or HELOAN.
A quick review shows your maximum combined leverage up to 80% CLTV — no tax returns, no credit impact, no obligation.