Maine DSCR HELOC and 36 States plus Washington, DC: Investment Property HELOC Qualified on Rent

A DSCR HELOC is a line of credit against the equity in a rental property, qualified on the property's rent instead of your personal income. You draw against it as needed, similar to a traditional HELOC, but the approval logic is different. Since approval comes down to whether the rent covers the payments, you can run the property through my DSCR calculator before I review your file.

A DSCR second mortgage gives you one lump sum secured by the rental behind your first mortgage. It uses the same rent based qualification, but it is not a line of credit.

Both options sit behind your existing first mortgage, so you keep whatever you already have on that loan and add a second lien for the funds you need. If you are buying your own Florida home before selling, a bridge loan alternative may fit better.

If you'd rather have one loan than two, or your first mortgage doesn't need to stay as is, a DSCR cash out refinance replaces the first mortgage and pulls equity out at the same time. Ask me which structure fits your numbers.

Investors who want to pull equity out of a rental to buy another property, fund renovations or cover reserves, without disturbing a first mortgage they want to keep.

• The property address and current mortgage balance
• Documented rent, a lease or the appraiser's market rent
• Entity documents if closing in an LLC
• Credit and reserve information

Portland multi units and seasonal rentals both come up often. I review the rent roll on a multi unit and the seasonality on a seasonal property the same way I would for a purchase. Details for Maine rentals are on my Maine DSCR HELOC page.

Insurance quotes and condo rules still matter on a DSCR HELOC or second mortgage the same as on a purchase. Get a current insurance quote and check the association's rules before you count on the numbers. If it's your own Florida primary or second home, not a rental, you want my regular Florida HELOC instead.

I arrange investment property HELOCs and DSCR second mortgages in these 36 states plus Washington, DC: Alabama, Alaska, Arkansas, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia (LLC only), Hawaii (not Hawai'i Island), Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland (not Baltimore City), Michigan, Mississippi, Missouri, Montana (LLC only), Nebraska, New Hampshire, New Jersey, New Mexico, North Carolina, Ohio, Oklahoma, Pennsylvania, South Carolina, Texas, Vermont, Virginia (LLC only), Washington, Wisconsin, Wyoming. California is not available for originations. Primary and second homes are available in Maine and Florida only. Rhode Island is not offered. New York, Massachusetts and West Virginia are not available for this HELOC. New Hampshire is investment property only, never a primary or second home HELOC. If your rental is in New York, see my page on DSCR loans in New York. See my Licensing page for company and mortgage broker licensing details.