DSCR Investor Loans
DSCR HELOC and second mortgage on a rental property
A heloc on investment property or a heloc on rental property isn't a bank product qualified on your personal income. It's a DSCR HELOC or DSCR second mortgage, qualified on the rent.
Travis Penny, Mortgage Broker, NMLS 1649161, Vision Mortgage, LLC NMLS 1286953. NMLS Consumer Access
Reviewed by Travis Penny, NMLS 1649161
Last reviewed September 29, 2026
All loans are subject to credit and underwriting approval. Not all applicants will qualify. Program terms and availability can change. This page is for general education and is not a loan offer or a commitment to make a loan. Travis Penny, NMLS ID #1649161, is a mortgage broker with Vision Mortgage, LLC, NMLS #1286953. Equal Housing Opportunity.
Can you get a HELOC on a rental property?
I do home equity loans on primary homes in Maine and Florida the traditional way. On a rental, I don't do a traditional bank HELOC qualified on your personal income. The path is a DSCR HELOC or a DSCR second mortgage, both qualified on the property's rent, the same way a DSCR purchase loan works.
Qualifies on the rent
The property's rent drives approval, not your personal income documents.
Keep your first mortgage
A DSCR HELOC or second mortgage sits behind your existing first mortgage.
37 states
Available anywhere I do DSCR loans.
What a DSCR HELOC is
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.
What a DSCR second mortgage is
A DSCR second mortgage is one lump sum, secured by the rental behind your first mortgage. Same rent based qualification, different structure than a line of credit.
Keeping your first mortgage in place
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.
When a DSCR cash out refinance fits 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.
Who it fits
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.
What I need
- 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
Maine
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.
Florida
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.
Which states
I do DSCR HELOCs and DSCR second mortgages in all 37 states where I do DSCR loans: Alabama, Alaska, Arkansas, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Mississippi, Missouri, Montana, Nebraska, New Hampshire, New Mexico, North Carolina, Ohio, Oklahoma, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Virginia, Washington, West Virginia, Wisconsin, Wyoming. See the current list on my Licensing page.
Frequently asked questions
Can I get a HELOC on a rental property?
Not a traditional bank HELOC qualified on your personal income. On a rental, the path is a DSCR HELOC or a DSCR second mortgage, both qualified on the property's rent.
What's the difference between a DSCR HELOC and a DSCR second mortgage?
A DSCR HELOC is a line of credit you draw against as needed. A DSCR second mortgage is one lump sum. Both sit behind your first mortgage, which stays in place.
When does a cash out refinance fit better than a DSCR HELOC?
If your first mortgage rate isn't a concern and you want one loan instead of two, a DSCR cash out refinance can make more sense. If you want to keep your existing first mortgage in place, a DSCR HELOC or second mortgage fits better.
Which states do you do DSCR HELOCs in?
I do DSCR HELOCs and DSCR second mortgages in all 37 states where I do DSCR loans. See the state list on my Licensing page.
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