On this page
- DSCR HELOC lenders and their terms
- How much you can borrow: the CLTV math
- DSCR HELOC requirements
- Worked comparison: refinance or add a line?
- DSCR HELOC vs HELOAN vs cash-out refinance
- Who a DSCR HELOC suits, and the risks
- State limits
- Before you apply
- Questions to ask a DSCR HELOC lender
- Related guides
- Frequently asked questions
Based on each lender's published information; we did not apply for loans.
A DSCR HELOC is a home equity line of credit on a rental property that is underwritten like a DSCR loan: the lender looks at whether the property's rent covers the debt, not at your tax returns or debt-to-income ratio. Because it is a second mortgage, your first mortgage and its rate stay where they are. Unlike a cash-out refinance, a HELOC generally lets you keep the first mortgage instead of replacing it.
You will see it under several names. A DSCR HELOC or investor HELOC is the revolving version. A DSCR HELOAN, DSCR second mortgage or closed-end second lien is the lump-sum version, paid back on a fixed schedule. Both sit behind the first mortgage and both are qualified on rent. The DSCR loans page covers first-lien DSCR loans for buying or refinancing; this page covers borrowing against a rental you already own without touching that first loan.
DSCR HELOC lenders and their terms
Few lenders publish investor HELOC terms. These four programs do, on their own pages. Angel Oak says it offers business-purpose loans for investment properties through approved clients, so you reach it through a loan originator.
| Program | Type | Max CLTV | Minimum credit | Minimum DSCR | Amount | Term |
|---|---|---|---|---|---|---|
| Griffin Funding DSCR HELOC | Revolving line | 70% | 720 | 1.1 | $100,000 to $500,000 | Draw period; interest only on what you borrow |
| Griffin Funding DSCR HELOAN | Fixed lump sum (second mortgage) | 80% | 680 | 1.0 | $100,000 to $500,000 | 15, 20, 25 or 30 years fixed |
| Truss Financial Group DSCR HELOC | Revolving line | 80% | 660 for best rates | 0.75 | $50,000 to $1,000,000 | 5-year draw period, interest-only option |
| Angel Oak DSCR closed-end second lien | Fixed lump sum (through loan originators) | 75% | 700 (70% CLTV); 720 (75% CLTV) | 1.2 | $100,000 to $350,000 | 20-year fixed |
From each company's own website, read October 29, 2026. "Not stated" means the company does not publish it on the pages linked. Terms change; confirm with the lender. Not financial advice.
Deephaven also describes DSCR HELOANs (closed-end second mortgages) as ideal for self-employed borrowers and LLC-owned properties, but does not publish CLTV, credit or amount limits on that page. Griffin Funding's full program is reviewed in our Griffin Funding review.
How much you can borrow: the CLTV math
Combined loan-to-value (CLTV) adds your first mortgage and the new line, then divides by the property value. Published DSCR HELOC caps run from 70% to 80%. The room you have is the value times the cap, minus what you owe.
| Program | Max CLTV | Room, $180,000 owed | Meets the minimum? | Room, $250,000 owed | Meets the minimum? |
|---|---|---|---|---|---|
| Griffin Funding DSCR HELOC | 70% | $100,000 | Yes | $30,000 | No (minimum $100,000) |
| Griffin Funding DSCR HELOAN | 80% | $140,000 | Yes | $70,000 | No (minimum $100,000) |
| Truss Financial Group DSCR HELOC | 80% | $140,000 | Yes | $70,000 | Yes |
| Angel Oak DSCR closed-end second lien | 75% | $120,000 | Yes | $50,000 | No (minimum $100,000) |
On a $400,000 rental with $180,000 owed, every program leaves at least $100,000 of room. With $250,000 owed, only Truss's 80% cap and $50,000 minimum still work, at $70,000. If you owe a lot on the first mortgage, a DSCR cash-out refinance may be the only way to reach the equity.
DSCR HELOC requirements
The rent test
Minimum ratios range from 0.75 at Truss to 1.2 at Angel Oak. On a $2,000 monthly payment, that means rent of at least:
| Program | Minimum DSCR | Rent needed |
|---|---|---|
| Griffin Funding HELOC | 1.1 | $2,200 |
| Griffin Funding HELOAN | 1.0 | $2,000 |
| Truss Financial Group HELOC | 0.75 | $1,500 |
| Angel Oak closed-end second lien | 1.2 | $2,400 |
Rent = payment x minimum DSCR. Ask each lender whether the payment includes the new second-lien payment.
Everything else
- Property: investment property only. Single-family, PUD, townhome or 2-4 units at Griffin; 1-4 units, condos and PUDs (non-owner occupied) at Truss.
- Credit: 660 for Truss's best rates, 680 for Griffin's HELOAN, 700 to 720 at Angel Oak, 720 for Griffin's HELOC.
- Entity title: LLC- or corporation-titled properties qualify at Griffin, and Truss closes in the name of your LLC. More on DSCR loans for an LLC.
- Reserves: none required on Griffin's HELOAN and HELOC.
- Experience: Angel Oak requires a minimum 2 years of managing income producing investment properties.
Worked comparison: refinance or add a line?
Take the same $400,000 rental with $180,000 owed on a low-rate first mortgage.
| Option | Total debt allowed | New cash before costs | Your existing first mortgage |
|---|---|---|---|
| Cash-out refinance at 75% LTV (LendingOne, Easy Street, Upright) | $300,000 | $120,000 | Paid off and replaced at today's rate |
| Cash-out refinance at 80% LTV (Griffin, needs a 1.0 DSCR) | $320,000 | $140,000 | Paid off and replaced at today's rate |
| DSCR HELOC at 80% CLTV (Truss) | $320,000 | $140,000 | Stays in place at its current rate |
The 80% options free the same $140,000. The difference is the $180,000 you already owe: a refinance moves it to a new rate, a line leaves it alone. If your first mortgage carries a rate well below today's, the line usually protects more of your cash flow; if it is higher, refinancing the whole balance may cost less. Either way the property's rent has to support both payments.
You pay interest only on what you draw
At Griffin, interest accrues only on what you have borrowed. Draw $60,000 from a $140,000 line, say for 20% down on a $300,000 rental, and you pay interest on $60,000, 42.9% of the line, until you draw more. Truss pairs its 5-year draw period with an interest-only payment option.
DSCR HELOC vs HELOAN vs cash-out refinance
| DSCR HELOC | DSCR HELOAN | DSCR cash-out refinance | |
|---|---|---|---|
| Lien | Second lien; first mortgage stays | Second lien; first mortgage stays | Replaces the first mortgage |
| How you get the money | Line you draw as needed | Lump sum at closing | Lump sum at closing |
| Maximum at Griffin Funding | 70% CLTV | 80% CLTV | 80% LTV (needs a 1.0 DSCR) |
| Payment | Interest only on what you have drawn | Fixed for 15 to 30 years | New payment on the whole balance |
| Best when | You need cash in stages | You need one sum and a fixed payment | Your current rate is higher than today's |
Investors draw large lines: Griffin Funding's analysis of HMDA data puts the average 2025 HELOC on an investment property at $384,000. Common uses its page lists are the down payment on the next property and renovations. Using a line for a down payment is covered on DSCR loans with no down payment.
Who a DSCR HELOC suits, and the risks
A good fit
- Owners with a first mortgage at a rate they want to keep.
- Investors who need cash in stages: a down payment now, a rehab draw later.
- Self-employed borrowers whose tax returns understate income, since the rent qualifies the line.
- LLC owners, at the lenders that accept entity title.
The risks
- Two payments on one property: the rent has to carry both.
- Less equity cushion: at 80% CLTV a modest drop in value leaves little room to sell or refinance.
- Rate terms: ask in writing whether the line's rate is fixed or variable and how it can change.
- Draw periods end: Truss's runs 5 years; ask what the payment becomes afterward.
State limits
Programs are not available everywhere. Angel Oak's first-lien DSCR program page notes: "Texas (TX): HELOC transactions are not eligible." Its second-lien product is closed-end rather than a line. Griffin Funding says it lends on investment properties in all 50 states and Washington, D.C., while its DSCR page says it is licensed in 47 states plus D.C. Confirm your state before you apply.
Before you apply
Have the numbers ready that every program on this page tests: a current value estimate, your first-mortgage balance (to work out CLTV), the lease or market rent and the full monthly payment (to work out DSCR), and your credit score against each program's floor. If the property is in an LLC, have the entity documents too. Run the ratio first in the DSCR calculator.
Questions to ask a DSCR HELOC lender
- Does the DSCR test include the new line's payment, and at what rate is it calculated?
- How long is the draw period, and what happens to the payment when it ends?
- Is the rate fixed or variable, and is there a prepayment penalty or annual fee?
- Can the line sit behind any first mortgage, including a DSCR loan from another lender?
- Will the valuation be a full appraisal or an automated one?
Related guides
Frequently asked questions
Can you get a HELOC on a rental property?
Yes, from a small number of lenders. Griffin Funding offers a DSCR HELOC up to 70% CLTV and Truss Financial Group one up to 80% CLTV, both qualified on the property's rent.
Is a DSCR HELOC a second mortgage?
Yes. Griffin Funding describes its DSCR HELOAN and DSCR HELOC as second mortgages, so the first mortgage and its rate stay in place.
What CLTV do DSCR HELOCs allow?
Published caps run from 70% (Griffin Funding's HELOC, Angel Oak at 700 credit) to 80% (Griffin Funding's HELOAN depending on credit, Truss Financial Group).
What DSCR do you need for a DSCR HELOC?
It depends on the program: 1.1 for Griffin Funding's HELOC, 1.0 for its HELOAN, 1.2 for Angel Oak's second lien and as low as 0.75 at Truss Financial Group.
Can an LLC get a DSCR HELOC?
Yes, at the lenders that publish it: Griffin Funding says LLC- or corporation-titled properties qualify, and Truss closes in the name of your LLC.
Can I get a DSCR HELOC in Texas?
Check each lender. Angel Oak's DSCR program page says Texas HELOC transactions are not eligible; Griffin Funding says it lends on investment properties in all 50 states and D.C.