Can I Get a Home Equity Loan on a Rental Property?
Yes, from lenders that offer one. In our reading, fewer lenders published a home equity loan for rentals than a line of credit. One did: a lump sum at closing, with fixed payments fully amortized over 20 or 30 years, alongside the mortgage you already have. On a rental, its published limit is 75% combined loan-to-value for credit scores of 700 and up.
Last updated October 21, 2026How it differs from a HELOC
A home equity loan pays you once, at closing, and you repay it in fixed payments. A HELOC is a line you draw on as you need it. Both sit alongside your current mortgage, so a low rate on that first loan stays in place. If you'd rather draw over time, see HELOCs on an investment property.
How much you can borrow against a rental
Less than against the home you live in. That lender's published table allows 90% combined loan-to-value on a primary home and 75% on an investment home for scores of 700 and up, dropping to 70% on an investment home at 680 to 699. Its loans run from $50,000 to $500,000. Combined loan-to-value counts your first mortgage and the new loan together against the property's value.
Other terms it publishes
- Available for primary, vacation and investment properties
- Funds for personal or business use
- No prepayment penalty
- Programs that use bank statements, rental income or DSCR-style qualifying may also be available
If the rental is held in an LLC
Check before you apply. One lending network says the equity lines in its network need title in your own name or a revocable trust, and points owners of LLC-held rentals to a DSCR cash-out refinance instead. Our page on HELOCs for property held in a trust or LLC covers the title question.
Home equity loan, cash-out refinance or DSCR loan?
A home equity loan leaves your first mortgage alone and adds a second payment. A cash-out refinance on a rental replaces the first mortgage with a larger one. A DSCR loan qualifies on the property's rent rather than your personal income and can be a cash-out refinance. Which comes out ahead depends on your current rate and what each lender offers you, so compare them side by side.
What to ask a lender
- Do you offer a home equity loan on a property I don't live in?
- What's the maximum combined loan-to-value for my credit score?
- Will the loan be in first or second lien position?
- Can the borrower be my LLC?
- Is there a prepayment penalty?
| Available | Yes; one of the lenders we read publishes one for investment properties |
|---|---|
| How it pays | A lump sum at closing, fixed payments over 20 or 30 years at the lender we read |
| Borrowing limit | 75% combined loan-to-value on an investment home at 700 and up; 70% at 680 to 699, at that lender |
| Primary home contrast | 90% combined loan-to-value at the same lender |
| Loan size | $50,000 to $500,000 at that lender |
| LLC title | Not accepted on one network's equity lines; ask each lender |
Related questions
Sources
- https://andesmortgage.com/home-equity-loan/
- https://www.lendmire.com/home-equity-loan/
Sourced from licensed loan officers and brokers in the FreeRateUpdate network.
Educational information only, not individualized financial or legal advice. Program details and rates change; verify current terms with a licensed loan officer before making a decision.