Many or all companies we feature compensate us. Compensation and editorial research influence how products appear on a page. Home Equity HELOCs Best Non-Owner-Occupied HELOCs Updated Feb 25, 2025 9-min read Expert Approved Expert Approved This article has been reviewed by a Certified Financial Planner™ for accuracy. Written by Rebecca Lake, CEPF® Written by Rebecca Lake, CEPF® Expertise: Student loans, mortgages, home-buying, credit, debt, personal loans, education planning, insurance, investing, small business Rebecca Lake is a certified educator in personal finance (CEPF®) and freelance writer specializing in finance. Learn more about Rebecca Lake, CEPF® Reviewed by Erin Kinkade, CFP® Reviewed by Erin Kinkade, CFP® Expertise: Insurance planning, education planning, retirement planning, investment planning, military benefits, behavioral finance Erin Kinkade, CFP®, ChFC®, works as a financial planner at AAFMAA Wealth Management & Trust. Erin prepares comprehensive financial plans for military veterans and their families. Learn more about Erin Kinkade, CFP® A non-owner-occupied home equity line of credit (HELOC) can offer an avenue for financing expenses for maintenance and repairs versus paying for them from cash flow or savings. When a HELOC is non-owner-occupied, it means you own the home you plan to use as collateral for the line of credit, but it isn’t your primary residence. Here’s what to know about this financing option, including where you might get it, how to qualify, and available alternatives. Table of Contents Skip to Section Best non-owner-occupied HELOCsHow to qualify for a non-owner-occupied HELOCHow to choose the best non-owner-occupied HELOC for youHow to apply for a non-owner-occupied HELOCAlternatives to non-owner-occupied HELOC Reviews of the best non-owner-occupied HELOCs Company Best for… Rating (0-5) 4.9 View Rates Best Overall 4.9 View Rates 4.5 View Rates Best Marketplace 4.5 View Rates HELOCs are a common way to tap into your primary residence’s home equity but are less common for non-owner-occupied properties. Lenders may view these lines of credit as having a higher risk of default. So, if you want to tap the equity in your investment property to finance a renovation or home improvement project, we’ve researched the best non-owner-occupied HELOCs available. Figure View Rates Best overall HELOC Credit lines up to $400,000Available for second homesFast closings possible For borrowers interested in financing a home project in a second home, Figure’s home equity line of credit is worth considering. The figure is a financial technology company founded in 2018. As of June 2024, it offers HELOCs in 45 states and Washington, D.C. Figure leverages artificial intelligence and blockchain technology to simplify and expedite the closing process for borrowers. HELOCs as small as $15,000 or as large as $400,000 are available through Figure, and you may be able to close on your loan and get funding in five business days. The largest lines of credit are reserved for borrowers with the best credit. Another caveat: You can’t get a Figure HELOC on a multifamily (two-plus-unit) property. Given that, this option is best for renovating a second home. We recommend Figure for borrowers planning to use all or most of their line of credit at closing because Figure requires an initial withdrawal of 100% of your credit line (minus fees). As you pay it down, you can borrow again during the two- to five-year draw period. LendingTree View Rates Starting at 6.24%$10,000 – $2 millionDraw period of 2 – 20 years LendingTree provides access to multiple lenders, allowing for comprehensive comparison tools to find competitive rates and customizable loan options. With LendingTree, you enter the basic information of the loan you’re looking for along with some personal info, and LendingTree gives you a list of lenders that you might be able to work with. In general, to get a home equity loan or HELOC, you must own a home and have some equity. Most of LendingTree’s partners will let you borrow up to 85% of the equity that you’ve built in your home, so you need to make sure you have enough equity to get a large enough loan for your needs. This platform is ideal for those who want to evaluate various loan offers to find the best fit for their financial situation. LendingTree’s extensive network of lenders ensures that borrowers can access a wide range of HELOC products, making it easier to find a loan that meets specific needs and preferences. How to qualify for a non-owner-occupied HELOC Lenders can use the same criteria when determining whether to approve someone for a non-owner-occupied HELOC as for a HELOC on a primary home. However, the minimum requirements may be more stringent for an investment property because these lines of credit present a greater risk to the lender. Here’s a rundown of what most lenders consider: Credit scores. A credit score of 620 to 640 may be sufficient to qualify you for a traditional HELOC. Lenders may bump that to 700 or better for a non-owner-occupied line of credit. Loan-to-value ratio (LTV). LTV measures the amount of equity you have in your home. Traditional HELOCs may allow a maximum LTV of 90%, but lenders may cap it at 80% or lower for non-owner-occupied HELOCs. Cash reserves. Your lender may want reassurance that you have funds on hand to cover HELOC payments should you run into financial trouble. You may need to show proof of 12 to 18 months’ worth of expenses in cash reserves, whereas a traditional HELOC may require a smaller amount of savings. A lender may also want proof of occupancy by a tenant if the property in question is a rental. How to choose the best non-owner-occupied HELOC for you The selection of lenders for a non-owner-occupied HELOC may be limited, but it’s still important to shop around. Here are some of the main factors to weigh when making a decision. Rates. Interest rates are always a consideration for a home equity line of credit because the rate determines your cost of borrowing. When comparing non-owner-occupied HELOC rates, first look at whether the rate is fixed or variable and then focus on the number itself to see what different lenders offer. Maximum LTV. Checking maximum LTV requirements can indicate how much equity you need, at a minimum, to qualify for a non-owner-occupied HELOC. Calculating your estimated home equity can help you narrow down the list of possible lenders you may get approval from. Borrower requirements. Borrower requirements can cover credit history and scores, debt-to-income ratio, and cash reserves. Checking your credit scores and calculating your DTI can give you a better idea of whether you meet a particular lender’s guidelines. It’s also helpful to consider funding speeds, options for accessing your credit line, and repayment terms. The best HELOC for you is one that fits your budget and delivers cash when you need it. Our expert’s advice Erin Kinkade CFP® I suggest being prepared to pay higher interest rates, even if you have a good to excellent credit score and positive report. In addition, I suggest seeking other options for tapping into equity, such as refinancing (if the interest rate environment is favorable) or comparing personal loan rates and commercial loan rates. How to apply for a non-owner-occupied HELOC Once you’ve found a non-owner-occupied HELOC that seems right, it’s time to apply. Depending on the lender, you might be able to apply online, in person, or over the phone. It could be useful to speak with a loan officer to explain your situation and get guidance on the application process. Your lender may request copies of the following documents to help verify your identity, income, and employment: Driver’s license or another government-issued ID Pay stubs W-2s Tax returns Utility bills Bank statements Mortgage statements Property tax bill Homeowners insurance policy Proof of lease or rental agreement (for rental properties) Documentation showing rental income As part of the application process, the lender may ask questions about your primary residence, including: What type of mortgage you have How much you owe to the loan Whether your monthly payment includes property taxes and insurance Whether you have any second mortgages outstanding and, if so, the amount The lender will likely request an appraisal to determine the value of the property being used to secure the HELOC. You may also be asked about your history as a rental homeowner, if that’s applicable, and how much experience you have with investment properties. Alternatives to non-owner-occupied HELOC If you’re struggling to find a lender that offers a non-owner-occupied HELOC that meets your needs or you don’t qualify, other types of financing may be available. Financing typeProsConsHELOCFlexible credit linePay interest only on what you borrowSecured by primary homeVariable rates could make borrowing more expensiveHome equity loanGet funding in a lump sumFixed rates with predictable paymentsRates may be higher than HELOCsAvailability may be limited for investment propertiesCash-out refinanceNo need to get a second mortgageWithdraw equity in cash at closingRates may be higher than HELOCsLarger mortgage paymentPersonal loanNot secured by propertyFavorable rates for borrowers with excellent creditLoan limits may be lowerLower credit scores can result in higher ratesCredit cardGood for smaller home improvement projectsPurchases may earn rewardsCredit card APRs can be higher than loan ratesLower credit limits Home equity loan Certain lenders may allow you to take out a home equity loan on a rental or investment property but not a HELOC. Like HELOCs, home equity loans allow you to borrow against your home, but you get the funds in a lump sum instead of a credit line. Home equity loans may have higher rates than HELOCs. It could be challenging to get one for certain property types. For instance, you may be able to get a home equity loan for a second home but not a three- or four-unit multifamily. Lenders will have different rules, so do your due diligence to find the best home equity loan. Cash-out refinance As an alternative to a HELOC, you may be able to tap into your investment property’s equity with a cash-out refinance. This type of refinance involves borrowing a larger amount than you owe on your mortgage and using the difference to cover home projects or other costs. You may see higher interest rates or need more equity than for a cash-out refinance on your primary residence. Generally, a cash-out refinance for an investment property is a better option in a low-interest-rate environment. Read more: Cash-out refinance vs. home equity loan Personal loan A personal loan can be a favorable alternative to a non-owner-occupied HELOC due to its quick disbursement and the ability to use loan funds for many purposes, including home improvement projects. They may come with higher rates than a HELOC or cash-out refinance, especially if your credit is less than stellar. But if you have excellent credit, you might be able to qualify for a low-rate loan from one of the best personal loan lenders. Credit card with a 0% introductory APR If you’re financing a small or inexpensive project, consider applying for a credit card that offers a 0% introductory APR on new purchases. This type of card offers deferred interest for a set time, often 12 to 21 months. Ensure you can repay the full balance on the card before the introductory APR expires, or interest charges could add up. Keep in mind that maxing out balances on your cards could be detrimental to your credit scores.