Best HELOC Lenders for Investment Properties 2026:
Chase Won't Do It. These 6 Lenders Will.
25–30%
Equity required
680+
Min credit score
9.25%+
Starting rate
⚡ Why Getting a HELOC on a Rental Property Is So Hard:
As of 2026, Chase, Wells Fargo, and Bank of America have stopped offering HELOCs on investment/rental properties entirely. They exited this market after 2020. The lenders that still do it: credit unions, fintech lenders like Figure, and portfolio lenders. They require 25–30% equity, 680+ credit, and full rental documentation — but they exist, and smart investors know them →
❌ Major Banks That NO Longer Offer Investment Property HELOCs
Don't waste time applying to these. They will decline investment property HELOC applications outright. See the lenders that DO approve investment HELOCs →
✅ Best HELOC Lenders for Investment Properties 2026
Figure Lending
⭐ Best Fintech — Fastest Close (5 Days)
Rate From
From 9.65% fixed
Max LTV
75% LTV
Min Credit
640
Max Line
$400,000
Figure is the standout fintech HELOC lender that operates on investment properties where banks refuse. Their fully digital process closes in as little as 5 days (vs 30–45 days for bank HELOCs). Unique feature: Figure offers FIXED-rate HELOCs — rare in the market. Instead of a variable rate that swings with prime, you lock in your rate at origination. Ideal for investors who need predictable carrying costs.
✅ Pros:
- • Fixed-rate option (unique in investment HELOC market)
- • Fastest close: 5–10 days
- • Accepts investment properties
- • Full digital process — no paperwork
❌ Cons:
- • Higher rate than bank HELOCs on primary
- • Fixed rate means no benefit if rates drop
- • Draw is all at once (not revolving in traditional sense)
Bethpage Federal Credit Union
🏆 Best Rate for Investment HELOC
Rate From
From 9.25% variable
Max LTV
70% LTV
Min Credit
680
Max Line
$500,000
Bethpage FCU is one of the few credit unions that explicitly offers HELOCs on investment properties — and their rates are the most competitive in this niche. They function as a true revolving credit line (draw, repay, draw again), which is ideal for serial investors using equity to fund multiple deals.
✅ Pros:
- • Lowest rate for investment property HELOC
- • True revolving credit line
- • Up to $500,000 credit line
- • Lower fees than fintech alternatives
❌ Cons:
- • Membership required (New York-based but open to many)
- • Slower processing than Figure (20–30 days)
- • Stricter documentation requirements
Quorum Federal Credit Union
🔥 Best for Multi-Property Investors
Rate From
From 9.50% variable
Max LTV
70% LTV
Min Credit
680
Max Line
$350,000
Quorum specializes in investors with multiple rental properties and understands the unique financial profiles of landlords — including the Schedule E losses that make investors look poor on paper. They take a common-sense underwriting approach to rental income and can work with complex portfolios.
✅ Pros:
- • Experienced with multi-property portfolios
- • Accepts Schedule E with paper losses
- • Competitive rate among investment HELOC lenders
- • Flexible on income documentation
❌ Cons:
- • Credit union membership required
- • Not available in all states
- • Smaller max line vs some competitors
Farmers & Merchants Bank
🏦 Best Regional Bank Option
Rate From
From 9.75% variable
Max LTV
65% LTV
Min Credit
700
Max Line
$250,000
Regional and community banks are often the most willing to do investment property HELOCs because they hold loans in their own portfolio (portfolio lenders) rather than selling to Fannie Mae. Farmers & Merchants and banks like them can be more flexible on documentation and approval — especially for long-term customers.
✅ Pros:
- • Portfolio lender — more flexible underwriting
- • Builds banking relationship for future deals
- • In-person service for complex situations
- • Can accommodate unique property types
❌ Cons:
- • Limited geographic availability
- • Higher equity requirement (65% LTV)
- • Smaller credit line cap
Hard Money HELOC Lenders
💡 Best for When All Else Fails
Rate From
10%–14% variable
Max LTV
60–65% LTV
Min Credit
620
Max Line
Varies
Hard money and private money lenders will do investment property HELOCs that no bank or credit union will touch — distressed properties, properties with tenants, landlords with complex income. The trade-off: rates are 2%–5% higher. Use these as a bridge solution, then refinance to a traditional lender once the property is stabilized.
✅ Pros:
- • Will approve what banks refuse
- • Asset-based (property value matters most)
- • Flexible on occupancy and property condition
- • Faster approval for urgent situations
❌ Cons:
- • Significantly higher rates (10%–14%)
- • Shorter draw periods
- • Higher fees
- • Use as bridge only — refinance when possible
📈 The Portfolio Scaling Strategy: Use Equity to Buy More Properties
How smart investors use investment property HELOCs to scale:
Property #1 has been appreciated — now worth $400K with $250K mortgage. You have $150K equity.
Get a HELOC on Property #1 for $75,000 (50% of equity at 70% LTV max).
Use $75K HELOC as down payment on Property #2 ($300K purchase = 25% down).
Property #2 cash flows $400/month after all expenses. Use that + rental income to repay HELOC over 18–24 months.
HELOC balance is back to $0. Both properties are appreciating. Repeat with Property #3.
Result: You've acquired 2 properties with $75K in working capital — the same money you would have needed for each deal separately. This is how portfolio investors go from 1 to 5 to 10 properties in 5–7 years.
💡 The Smart Alternative: HELOC on Your Primary Residence Instead
Can't qualify for a rental property HELOC? Use your primary home's equity instead — lenders don't restrict what you do with the funds.
Primary Residence HELOC:
- • Rate: 8.25%–9.25% (1%–2% lower than investment HELOC)
- • Max LTV: 85–90%
- • Easier qualification
- • More lenders available (including Chase, BofA)
- • Can use funds for investment property down payment
The Risk:
- • Your primary home secures the debt
- • If investment goes wrong, primary is at risk
- • Ensure rental income can cover HELOC payments
- • Keep reserves for vacancy and repairs
Your Rental Equity Is Working Capital — Use It
Stop leaving equity sitting idle in your rental portfolio. Get quotes from the lenders that actually offer investment property HELOCs — free, no commitment.
Get Investment Property HELOC Quotes →Investment Property HELOC FAQ 2026
Q: Is interest on an investment property HELOC tax deductible?
The interest on a HELOC used for investment property improvements or purchases may be deductible as a business expense on Schedule E (rental income and expenses). However, if the HELOC is secured by your primary residence but used for investment purposes, the deductibility rules are different and complex. The Tax Cuts and Jobs Act (2017) currently restricts home equity interest deductibility to loans used to buy, build, or substantially improve the securing property. Consult a CPA who specializes in real estate investors — proper structuring can preserve significant tax benefits.
Q: Can I use an investment property HELOC as a down payment for another property?
Yes — and this is one of the primary use cases. Lenders will ask for the source of your down payment funds on a new purchase. HELOC funds are acceptable as a down payment source as long as: the debt is disclosed on your application, the DTI calculation includes the HELOC payment, and you have sufficient reserves after the down payment. Some conventional lenders require the HELOC to be paid off or closed at closing (this is rare for investment property purchases but common for primary residence purchases). Always disclose HELOC proceeds as the down payment source — failing to do so is mortgage fraud.
Tap Your Rental Equity — Scale Your Portfolio
Compare quotes from the 6 lenders that actually approve investment property HELOCs. Most banks will say no — we'll connect you with the ones that say yes.
Compare Investment HELOC Lenders →Free • 680+ credit • 25%+ equity required
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Senior Mortgage Advisor & VA Loan Specialist
Sarah Mitchell brings over 12 years of mortgage industry expertise, specializing in VA loans and first-time homebuyer programs. As a certified NMLS professional, she has helped thousands of veterans and military families achieve homeownership through specialized loan programs. Her deep understanding of VA benefits and down payment assistance programs makes her a trusted advisor for service members transitioning to civilian life.
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