Many or all companies we feature compensate us. Compensation and editorial
research influence how products appear on a page.

Best HELOCs for Investment Properties: January 2026 Rates

An investment property can pay for itself and then some if you’re collecting enough rent to cover the mortgage, plus a little extra. As your rental property’s value grows, so does your equity. You might think about tapping that equity to make improvements or consolidate debt.

Can you get a home equity loan or line of credit (HELOC) on an investment property? Yes, though it isn’t always straightforward. The first step is identifying banks that offer HELOCs on rental property.

Rates (APR)
6.30% – 15.30%
Loan Amounts
$15K – $750K
Repayment Terms
5, 10, 15, or 30 years
Fees
Origination fee up to 4.99%; closing costs
Rates (APR)
Varies
Loan Amounts
$25K – $750K
Repayment Terms
Draw: Up to 10 years / Repayment: 10, 15, or 20 years 
Fees
Origination fee up to 1%; $1,000 appraisal fee
Rates (APR)
Not disclosed but rates are fixed for each draw
Loan Amounts
Up to $750K
Repayment Terms
Terms not disclosed, but option for 100% redraw
Fees
Not disclosed
Rates (APR)
6.49% – 9.65%
Loan Amounts
$10K – $500K
Repayment Terms
30 years, with a 10-year draw
Fees
No closing costs for HELOCs and home equity loans; other fees apply
Table of Contents

Can you get a home equity loan or HELOC on an investment property?

Yes, lenders can offer home equity loans and HELOCs for rental properties, though not all of them do. You might be able to get either type of loan if you’re qualified borrower. Here’s a quick primer on the difference between home equity loans and HELOCs:

  • A home equity loan allows you to borrow a lump sum and pay it back with interest. Home equity loans typically have fixed interest rates and repayment terms lasting up to 30 years.
  • A home equity line of credit is typically a revolving line of credit that you can draw against as needed. Rates are usually variable, though some lenders offer a fixed-rate HELOC option. You only pay interest on the amount you withdraw, and the term may last up to 20 years.

When you get a home equity loan or HELOC on a rental property, the property secures the loan. You can borrow against an investment property’s value to:

  • Make repairs or improvements to the property
  • Consolidate debt
  • Cover large expenses, either planned or unplanned
  • Buy another rental property
  • Pay medical bills

Home equity loans and HELOCs offer flexibility, and rates may be lower than what you’d pay for a personal loan. Still, remember that your home is collateral; if you fall behind on payments, you risk losing your property to foreclosure.

What banks offer home equity loans on a rental property?

Getting a home equity loan or HELOC on your primary residence is challenging enough. Qualifying for a home equity loan or HELOC on a rental can be even more difficult since fewer banks offer this option.

If you’re looking for the best home equity loans or HELOCs on non-owner-occupied properties, here are a few possibilities you might consider.

Figure

4.9 /5

Why it’s a good option

Figure offers HELOCs on investment properties, including single-family homes, condos, duplexes, and 3-4 unit properties. You may qualify for a no-appraisal HELOC if you plan to borrow less than $400,000.

Figure offers fixed and variable rates so you can choose what works best for your budget and needs. Once approved, loan funds can be delivered in as little as five days for amounts under $400,000.

Rates (APR)6.30% – 15.30%
Loan Amounts$15,000 – $750,000
Repayment Terms5, 10, 15, or 30 years
FeesOrigination fee up to 4.99%; closing costs

RenoFi

4.4 /5

Why it’s a good option

RenoFi connects rental property owners who need cash for renovations with home equity funding. Borrowing power is based on your home’s estimated value after renovations are complete. You can access up to 95% of your home’s value before work gets underway.

You’re not limited to HELOCs with RenoFi; you could choose a home equity loan if that better suits your needs. Home equity loans offer fixed rates, while RenoFi HELOCs may have fixed or variable rates.

Rates (APR)Varies by lender
Loan Amounts$25,000 – $750,000
Repayment TermsDraw: Up to 10 years / Repayment: 10, 15, or 20 years 
FeesOrigination fee up to 1%; $1,000 appraisal fee

Axen


Why it’s a good option

AXEN is another online lender offering HELOCs for rental and investment properties. You can borrow up to $750,000, with the option to take a 100% redraw.

The application process is streamlined; all you need to do is link your financial accounts to apply. Online support is available to answer questions and when you’re ready to sign off on loan paperwork, you can use Axen’s video notary services.

Axen doesn’t disclose information about rates online, but you can get a quote without impacting your credit scores. Approval may be granted in as little as five minutes, with funding as fast as three business days.

Rates (APR)Not disclosed but rates are fixed for each draw
Loan AmountsUp to $750,000
Repayment TermsTerms not disclosed, but option for 100% redraw
FeesNot disclosed

Fifth Third Bank


Why it’s a good option

Fifth Third Bank offers home equity loans, HELOCs, and mortgage refinancing for non-owner-occupied properties. Rates are some of the lowest you’ll find for a home equity loan or HELOC. You can choose from a fixed or variable-rate option.

Availability is more limited, as Fifth Third Bank only operates in a handful of states. However, it’s worth considering if you live in an eligible state and want a home equity loan or HELOC with no closing costs.

Rates (APR)6.49% – 9.65%
Loan Amounts$10,000 – $500,000
Repayment Terms30 years, with a 10-year draw
FeesNo closing costs for HELOCs and home equity loans; other fees apply

Home equity loan for a rental property vs. primary residence

Getting a home equity loan or HELOC on a rental property differs from borrowing against your primary residence in a few key ways. Lenders typically view home equity lending on rental properties as more risky, which means stricter eligibility rules. 

Here’s how eligibility requirements compare side by side. 

Rental propertyPrimary residence
Min. credit score700 – 720 is preferred640 – 680 is typical
Max. LTV75% – 85%80% – 95%
DTI ratioBelow 50% is preferredUp to 50% is typical
Cash reserves6 – 15 months of savings may be requiredOptional

Aside from that, rates and terms may be different. Banks that offer home equity loans on rental properties may charge higher rates, even if you have a higher credit score. Repayment terms may be shorter as well.

Choosing a home equity loan for a rental property

To get a HELOC or home equity loan on a rental property, you’ll need to find the right lender to work with. As you compare options, consider:

  • Eligibility
  • Minimum and maximum loan amounts
  • Interest rates
  • Repayment terms
  • Fees

Getting rate quotes from multiple lenders can help you gauge what terms you may qualify for with a HELOC or home equity loan. Look for lenders that don’t require a hard credit pull.

Also, consider location and customer service. Online lenders can offer speed and convenience, but if you prefer a personal touch, you may want to check loan options at local banks or credit unions.

Alternatives to consider

Home equity loans and HELOCs may work better for some borrowers than others. If you need cash, you may consider other possibilities. 

  • Cash out refi. A cash out refinance lets you replace your current mortgage with a new, larger one and take your equity out in cash at closing.
  • Credit cards. Credit cards can offer convenience and the potential to earn rewards if you use them for home improvements or other purchases. 
  • Personal loans. A personal loan enables you to borrow without using your home as collateral. 
  • HEIs. Home equity agreements give you access to funds without having to qualify for a HELOC or make monthly payments. Point offers home equity investments (HEI) for different property types, including rentals.

Home equity loans and HELOCs can help you get closer to your financial goals. If you don’t own a rental yet, learn how you can use a HELOC to buy an investment property.

Rates (APR)
6.30% – 15.30%
Loan Amounts
$15K – $750K
Repayment Terms
5, 10, 15, or 30 years
Fees
Origination fee up to 4.99%; closing costs
Rates (APR)
Varies
Loan Amounts
$25K – $750K
Repayment Terms
Draw: Up to 10 years / Repayment: 10, 15, or 20 years 
Fees
Origination fee up to 1%; $1,000 appraisal fee
Rates (APR)
Not disclosed but rates are fixed for each draw
Loan Amounts
Up to $750K
Repayment Terms
Terms not disclosed, but option for 100% redraw
Fees
Not disclosed
Rates (APR)
6.49% – 9.65%
Loan Amounts
$10K – $500K
Repayment Terms
30 years, with a 10-year draw
Fees
No closing costs for HELOCs and home equity loans; other fees apply
Article sources

At LendEDU, our writers and editors rely on primary sources, such as government data and websites, industry reports and whitepapers, and interviews with experts and company representatives. We also reference reputable company websites and research from established publishers. This approach allows us to produce content that is accurate, unbiased, and supported by reliable evidence. Read more about our editorial standards.

About our contributors

  • Rebecca Lake, CEPF®
    Written by Rebecca Lake, CEPF®

    Rebecca Lake is a certified educator in personal finance (CEPF®) and freelance writer specializing in finance.

  • Amanda Hankel
    Edited by Amanda Hankel

    Amanda Hankel is a managing editor at LendEDU. She has more than seven years of experience covering various finance-related topics and has worked for more than 15 years overall in writing, editing, and publishing.