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4 Best HELOC Lenders for Real Estate Investors

Looking for a HELOC for your investment property? Compare the top lenders offering competitive rates, flexible terms, and programs designed for real estate investors.

Written By

Lauren McKinley

Dec 2, 2025

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A home equity line of credit (HELOC) can be a powerful tool for real estate investors, but only a handful of lenders allow you to open a HELOC on an investment property itself. An investment-property HELOC lets you tap the equity in a rental or other non-owner-occupied property and use it as a flexible, revolving source of capital. This means you can borrow, repay, and borrow again as renovation needs, tenant turnover, or new opportunities arise.

Because these programs are less common, the lenders that do offer them each take a different approach. Rates, maximum line amounts, qualification standards, and even property-type eligibility can vary widely. To help make the comparison easier, I pulled together some of the best potential options I could find for investment property HELOCs. Whether you’re looking for competitive pricing, fast digital applications, or a lender that supports more complex investor scenarios, you can start here:

U.S. Bank: Best for large credit lines and flexible repayment options
Better Mortgage: Best for fast, fully digital HELOCs
Bank of America: Best for high-line amounts with strong rate discounts
TD Bank: Best for in-person support and flexible draw options

Best HELOC lenders for real estate investors at a glance
U.S. Bank: Best for large credit lines and flexible repayment options
Better Mortgage: Best for fast, fully digital HELOCs
Bank of America: Best for high-line amounts with strong rate discounts
TD Bank: Best for in-person support and flexible draw options
How to choose the right HELOC lender for your investment property
Pros and cons of using a HELOC as a real estate investor
Methodology: How I evaluated the best HELOC lenders for real estate investors
Frequently asked questions (FAQs)

Best HELOC lenders for real estate investors at a glance

	Best for	Maximum loan amount	Estimates starting rates
	Large credit lines and flexible repayment options	Up to $750,000, or up to $1,000,000 in California	From 7.45% APR
Visit U.S. Bank
	Fast, fully digital HELOCs	Up to $500,000	From 9% APR
Visit Better Mortgage
	High line amounts with strong rate discounts	Up to $1,000,000	Varies by state and eligibility (lower with discounts)
Visit Bank of America
	In-person support and flexible draw options	Up to $500,000 for standard terms	Based on Prime + margin (capped at 18%)
Visit TD Bank

Note that details regarding HELOCs for investment properties can vary widely by lender and by property type, location, and other factors required by the lender. It’s also important to consider that investment properties may be subject to additional review and requirements. As such, this guide outlines standard HELOC terms outlined by each lender as a starting point; however, these can change based on your specific needs.

U.S. Bank: Best for large credit lines and flexible repayment options


Pros: High maximum line amounts Ability to convert part or all of the balance to a fixed rate during the draw period Competitive introductory APRs for well-qualified borrowers Rate discounts available for eligible checking account customers	Cons: Strong credit and equity are needed to qualify for the lowest rates Annual fee applies after the first year unless waived by an eligible checking account Early closure fee applies if the line is closed within the required period Investment property eligibility may be limited depending on location and property type
HELOC terms: Line amounts: up to $750,000, or up to $1 million in California Variable APR: 7.45% to 11.10% based on credit, CLTV, and account relationships Minimum credit score: 660 CLTV limit: typically up to 80% Draw period: 10 years Repayment period: 20 years Annual fee: $75 after the first year No standard closing costs in most cases	HELOC type offered: Variable-rate HELOC with optional fixed-rate conversion
Visit U.S. Bank

Why I like U.S. Bank

U.S. Bank offers well-structured options for borrowers who need to access equity from an existing investment property. Its higher line amounts and fixed-rate lock feature support long-term planning for renovations, improvements, or operational needs associated with rental real estate. Although qualification standards are often more rigorous for non-owner-occupied properties, U.S. Bank provides transparent pricing, relationship-based rate discounts, and the stability of a nationally recognized lender. This makes it a dependable choice for investors seeking consistent, predictable access to equity in their investment properties.

Better Mortgage: Best for fast, fully digital HELOCs


Pros: Fully digital application and fast approvals Allows HELOCs on investment properties and second homes No application or unnecessary lender fees Soft-pull prequalification that does not impact your credit	Cons: Not available in all states (not offered in TX or UT) Starting APR is higher than rates from some traditional banks Investment property underwriting may require stronger credit and more equity
HELOC terms: Line amounts: $50,000 to $500,000 Variable APR: 9% to 15.55% depending on eligibility and state Draw requirement: Must draw the greater of $50,000 or 75% of the credit limit at funding CLTV limit: up to 90% depending on qualifications Available for primary residences, second homes, and investment properties Fully digital application with same-day prequalification	HELOC type offered: Variable-rate HELOC with optional fixed-rate conversion
Visit Better Mortgage

Why I like Better Mortgage

Better Mortgage offers one of the most streamlined HELOC experiences available. The fact that they allow investment properties immediately makes them stand out for real estate investors. The digital application is quick, the terms are clearly presented, and the upper limit of $500,000 can work well for investors who need access to significant capital. While the required initial draw and state limitations are important to consider, the overall convenience and transparency make Better Mortgage a strong option.

Bank of America: Best for high-line amounts with strong rate discounts


Pros: High maximum line amounts No application fee, no annual fee, and no closing costs for qualifying lines Option to convert portions of the balance to a fixed rate	Cons: Borrowers need strong credit and solid equity to qualify for the best terms Investment property eligibility varies and may require additional review
HELOC terms: Line amounts: Up to $1,000,000 for eligible properties CLTV limit: typically up to 85% of the home’s value minus the existing mortgage Draw period: generally 10 years Repayment period: up to 20 years Fixed-rate conversion: minimum of $5,000 per conversion, with up to three fixed-rate segments at a time Rate discounts: 0.25% for automatic payments, larger discounts for Preferred Rewards membership, and additional discounts for large initial withdrawals No application fee, no annual fee, and no closing costs on qualifying lines	HELOC type offered: Variable-rate HELOC with optional fixed-rate conversion
Visit Bank of America

Why I like Bank of America

Bank of America offers a solid HELOC option for borrowers who need access to larger credit lines and want straightforward pricing. The rate discounts available through automatic payments or Preferred Rewards can make a noticeable difference over time, and the fixed-rate conversion feature adds predictability when planning for long-term financing needs. For borrowers with strong credit and equity, Bank of America provides a dependable structure that can support major renovations, portfolio improvements, or other large investment goals.

TD Bank: Best for in-person support and flexible draw options


Pros: Convenient branch network for in-person support and application help No minimum draw required at the opening of HELOC Option to convert variable rate to fixed rate on part or all of your line Customers with TD checking accounts can earn a 0.25% rate discount	Cons: Investment property and second home HELOCs may require additional closing costs and stricter underwriting HELOC rates are not published as a simple starting APR
HELOC terms: Line amount: Up to $500,000; for line amounts greater than $500,000, additional terms and conditions will apply Variable APR: based on the Wall Street Journal Prime Rate plus a margin that depends on eligibility, not to exceed 18% Draw period: 10 years Repayment period: 20 years Fixed-rate option: borrowers can convert a portion or all of the outstanding balance to a fixed rate with a minimum conversion amount of $5,000 Annual fee: $50 after the first year for lines $50,000 and higher Origination fee: $99 Early termination fee: 2% of outstanding principal, up to $450, if the line is closed within 24 months No minimum draw required at opening	HELOC type offered: Variable-rate HELOC with optional fixed-rate conversion
Visit TD Bank

Why I like TD Bank

TD Bank offers a strong mix of flexibility, accessibility, and borrower support. The ability to avoid a minimum initial draw gives investors more control over when and how they use their funds. The option to convert a portion of the balance to a fixed rate is also valuable for long-term planning, especially when managing multiple properties or renovation timelines. For investors who prefer the reassurance of in-person service and a lender with a large regional presence, TD Bank delivers a dependable and straightforward HELOC experience.

How to choose the right HELOC lender for your investment property

There are many lenders that offer HELOCs, but only some will finance investment properties. As you compare your options, here are the key factors to consider:

Your finances and qualifications: Look at your credit score, existing mortgage balances, home value, and rental income. Lenders often require stronger credit and more equity for investment property HELOCs, so understanding your profile helps you identify which programs you qualify for.
Interest rates and fees: Review the full APR range, rate caps, and any rate discounts. Also, confirm annual fees, early closure fees, setup costs, and whether the lender covers closing costs.
Line amounts and property eligibility: Not every lender permits HELOCs on rental properties. Check whether your property type qualifies and compare maximum line amounts and CLTV limits to ensure you can access the funds you need.

Pros and cons of using a HELOC as a real estate investor

Pros	Cons
Flexible, reusable credit line you can draw from as needed	Variable interest rates can increase your cost of capital without warning
Interest-only payments during the draw period help keep cash flow steady	Some lenders don’t allow HELOCs on investment properties
Funds drawn can provide for a wide variety of uses	HELOCs on rental properties often come with higher rates and lower LTVs

Methodology: How I evaluated the best HELOC lenders for real estate investors

At The Close, our methodology is to provide real estate professionals with accurate and objective information on every topic. To help you find the investment property HELOC for your needs, our team of real estate professionals, researchers, writers, agents, and investors did thorough research.

Our criteria for evaluating the best HELOC lenders for real estate investors include:

Application and approval process: I looked for lenders with a simple online application, clear documentation requirements, and the option to prequalify with a soft credit check when possible. Since investors often move quickly, ease and speed were key factors.
Product structure and flexibility: I prioritized lenders that offer investment-property HELOCs, higher line amounts, and flexible draw and repayment terms. Features like fixed-rate conversion options and interest-only draw periods were also important.
Ease of use: I focused on lenders with strong digital platforms, online rate details, calculators, and clear explanations of terms.
Customer service and support: Access to knowledgeable support is essential when financing investment properties. I evaluated each lender’s availability through phone, chat, or local branches, as well as their online resources.
Rates and fees: I reviewed each lender’s interest rates, rate caps, annual fees, early closure fees, and any closing costs.
Reputation and borrower feedback: I considered lender history, national presence, and online reviews, prioritizing institutions with strong reputations for reliability and consistent service.

Frequently asked questions (FAQs)

Yes, some lenders allow HELOCs on investment properties, but the qualifications are typically stricter than for primary residences. You may need a higher credit score, lower combined loan-to-value ratio, and stronger income documentation to qualify.

Typically, yes. HELOC rates for investment properties are usually higher than those for primary residences because lenders view non-owner-occupied properties as higher risk. Your rate will depend on your credit score, LTV, location, and lender pricing.

A HELOC affects your DTI by adding a new line of credit with a required payment during the draw or repayment period. Lenders may use an assumed payment amount or a percentage of the line, so understanding this calculation is important before applying.

Lauren McKinley

Lauren McKinley is a financial professional with five years of experience in credit analysis, commercial loan administration, and banking operations. She has worked at regional lending institutions across the Northeast, evaluating risk, analyzing financials, and managing loan processes. Specializing in commercial real estate and small business financing, Lauren has helped diverse borrowers navigate financial solutions.