HELOC on rental property: can you get one for your Airbnb investment?

Category: Pricing & Revenue

By: James Wu

Posted: 2025-12-22T04:47:40.626Z

I have about $100K in equity in my Airbnb property (bought at $250K, now worth $350K, owe $200K). I want to access some of that equity without selling. Can you get a HELOC on an investment/rental property? I know HELOCs on primary residences are easy, but rental properties seem different. What are the terms like?

Reply by Priya Nair:

Yes, HELOCs on investment properties exist but they're harder to get and have different terms than primary residence HELOCs: **Investment property HELOC terms (typical):** - Max LTV: 70-75% (vs 85-90% for primary residence) - Interest rates: Prime + 1.5-3% (vs Prime + 0-0.5% for primary) - Draw period: 5-10 years - Repayment period: 10-20 years - Minimum credit score: 700+ (though 720+ gets better rates) - Most require 6-12 months ownership history **Your situation ($350K value, $200K owed):** - At 75% LTV: $350K × 0.75 = $262,500 max total debt - Available HELOC: $262,500 - $200K = **$62,500 max line** - Current rates: ~Prime + 2% = around 9-10% variable **Lenders that do investment property HELOCs:** - **Figure** (https://figure.com) — online, fast approval, does investment properties - **Spring EQ** — specializes in non-QM home equity products - **TD Bank** — one of few big banks that still does investment property HELOCs - **Local credit unions** — often more flexible than big banks - Some Community Development Financial Institutions (CDFIs) **Alternative: Cash-out refinance** If the HELOC rates (variable, 9-10%) bother you, consider a cash-out refi at a fixed rate. DSCR cash-out refi can get you $60-70K at a fixed 7-7.5%. Higher rate than your current mortgage but it's predictable. **What to use the HELOC for:** - Down payment on next STR: ✅ (this is how investors scale) - Furnishing/renovating current property: ✅ - Emergency fund: ✅ - Paying off credit card debt: ✅ (but be careful about securing consumer debt with property) - Non-investment spending: ❌ (risky — you're leveraging your investment)

Reply by Kevin O'Brien:

I used a HELOC from Figure on my STR to fund the down payment on my second property. Some real talk: **The good:** Fast approval (7 days), good customer service, digital process, no in-person appraisal needed (used AVM). **The concerning:** Variable rate started at 8.5% and has moved around. When rates go up, your payment increases. Hard to budget precisely. **Strategy:** I drew $55K from the HELOC and immediately used it for a 20% down payment on property #2. As property #2 cash-flowed, I aggressively paid down the HELOC. It took 18 months to pay it off using STR income. The math worked because property #2 generates $1,400/month net after all expenses. HELOC payment was ~$450/month. Net gain of $950/month while building $55K in additional equity in property #2. **Risk warning:** If property #2 had underperformed (low occupancy, surprise expenses), I'd still owe the HELOC payment plus the mortgage on property #2. Always have reserves. Track your portfolio performance across all properties and debt using Stessa (https://stessa.com) — shows you the full debt and cash flow picture in one dashboard.