Yes, you can get a HELOC on an investment property, but fewer lenders offer one, and the terms are tighter than on the home you live in. Direct Federal Credit Union, for example, lends up to 80% of combined loan-to-value on a primary residence but 70% on a second home or investment property, and Figure sets its minimum credit score at 660 for investment properties.
A HELOC is not the only route. You could take a home equity loan or a cash-out refinance on the property, borrow against your primary residence and put the money into the rental, or use a home equity agreement, which pays a lump sum with no monthly payments in exchange for a share of the home's future value. This guide compares all five and shows which companies say, on their own websites, that they take a rental, second home or investment property.
At a glance: For a credit line on the property itself, Figure accepts second homes and investment properties. For cash with no monthly payment, Unlock, Hometap, Point and Nada each say they accept a rental or second home, subject to their other criteria. Expect tighter terms than on a primary residence. Several of these companies say so outright.
Two terms come up throughout. A second home is one you use yourself for part of the year. An investment property is one you rent out or hold for profit, and it gets the stricter treatment of the two. Our home equity hub covers the same choices for a primary residence.
Options at a glance
There are five ways to turn equity in a rental or second home into cash. Here is how each works and what changes because you do not live there.
| Option | How it works | Monthly payment | What to know for a rental or second home |
|---|---|---|---|
| HELOC on the investment property | A revolving credit line secured by the rental or second home. You draw, repay and draw again. | Yes | Offered by fewer lenders. Figure asks for a 660 credit score on investment properties, and Direct Federal Credit Union caps these lines at 70% combined loan-to-value. |
| Home equity loan on the investment property | A second mortgage paid out as one lump sum, usually at a fixed rate. | Yes | The same idea with a fixed payment. Fewer lenders offer it on homes the owner does not live in, so ask about the maximum loan-to-value and the minimum credit score before you apply. |
| Cash-out refinance | A new, larger first mortgage replaces your current one, and you keep the difference. | Yes, one new mortgage payment | Fannie Mae caps a cash-out refinance at 75% loan-to-value on a one-unit second home or investment property, against 80% on a one-unit primary residence. You also give up your current mortgage rate. |
| HELOC on your primary residence, used for the rental | You borrow against the home you live in and put the money into the rental. | Yes | Usually easier to find and to qualify for, but the home you live in secures the debt. If the rental sits empty, the payment is still due. |
| Home equity agreement on the rental or second home | A company pays you a lump sum for a share of the home's future value. You settle when you sell, refinance or reach the end of the term. | No | Unlock, Hometap, Point and Nada say they accept these properties. What you owe at settlement depends on what the home is worth then, and it could be more than the cash you received. |
Figures come from each lender's or agency's own published terms. Sources are listed at the end of this page.
More: How to get equity out of your home without refinancing
Our home equity calculator takes the property's value and what you owe and shows your total equity and a rough range. It assumes a primary residence, so treat its HELOC figure as a ceiling for a rental.
Which companies accept a rental, second home or investment property
We read each company's own eligibility pages and FAQs for this guide. A yes below means the company says so on its own website. Approval still depends on the property, your credit and your state.
| Company | Rental or investment property | Second home | Credit minimum | What its website says |
|---|---|---|---|---|
| Figure (HELOC) | Yes | Yes | 660 for investment properties | The property may be a primary, secondary or investment residence. Two to four-unit properties need a 680 credit score and a debt-to-income ratio of 45% or less. Homes held in an LLC are allowed. |
| Hometap (home equity investment) | Yes | Yes, vacation properties | 575 FICO | Lists vacation and rental properties among the property types it invests in. It does not publish separate terms for them. |
| Unlock (home equity agreement) | Yes | Yes | 500 | Invests in primary residences, second homes and rental properties. Pricing is typically higher for a rental, rental income has to be verifiable, and it may not invest in rentals in certain areas. |
| Point (Home Equity Investment) | Yes | Yes | 500 | Investment properties and second homes are eligible, under different underwriting criteria than a primary residence. A property held in an LLC is not eligible. |
| Nada (Home Equity Agreement) | Yes | Yes | 720 investment property, 500 second home | Investment properties need no late payments in the last 24 months and are capped at $100,000 and 50% combined loan-to-value. Second homes get the primary-home limit of 30% of the home's value or $600,000. |
| Splitero (home equity investment) | In some cases | In some cases | 500 | One answer in its FAQ says a second home or investment property may be eligible in some cases. Another says the property must be owner-occupied when the investment is made. Ask before you apply. |
| Unison (equity sharing agreement) | Rarely | Rarely | Not published for these | Its programs are designed for an owner-occupied primary residence, and it says it does not generally invest in rental properties. It asks owners of second homes or rentals to call. |
Read on each company's own website on October 6, 2026. Splitero and Unison are listed so you know where they stand. They are not featured below.
More: Compare every home equity agreement company
State availability
Property type is half of eligibility. The home also has to be in a state the company serves. As of this update, Unlock lists 26 states, Point lists select regions of 31 states and Washington, DC, and Nada lists 12 states for primary homes. Hometap lists 27 states.
None of those four lists Alaska, Maine, Massachusetts, North Dakota, Rhode Island, South Dakota or West Virginia. Texas appears only on Nada's eligibility map, where it is marked investment homes only, so a Texas rental owner would need to confirm that with Nada directly. In those states, a HELOC, a home equity loan or a cash-out refinance is the realistic route. Figure offers its home equity line in 48 states and Washington, DC. Hawaii and New York are the exceptions.
Best fit by reader
Each company below says on its own website that it accepts a rental, second home or investment property. They are grouped by the reader they suit. This is not a ranking.
You want a credit line on the rental itself
What it is: A HELOC you apply for online, with terms of 10, 15, 20 or 30 years. Figure says the property may be a primary, secondary or investment residence, and it lends on homes held in an LLC.
The catch: You make monthly payments from the start, the full amount of its fixed-rate line is drawn at origination, and Figure verifies your income and employment. Available initial APRs range from 7.35% to 14.85%, and the lowest go only to the most qualified applicants who choose a 10-year term. The origination fee is up to 4.99% of the initial draw.
You want no monthly payment and up to $600,000
What it is: Hometap gives you a lump sum today in exchange for a share of your home's future value, with no monthly payments during the 10-year term. Its FAQ lists vacation and rental properties among the property types it invests in. You could access up to 27% of the home's value if you have at least 25% equity in the property and it is located in an eligible state, among other qualifying criteria.
The catch: Hometap earns an agreed percentage of what the home is worth when you settle, so settling could cost far more than the cash you received, and the full amount is due in one transaction within 10 years. Its FAQ does not publish separate terms for rental properties, and you need to tell Hometap before renting or leasing the home to someone else, so raise both points with your Investment Manager.
Your credit score is 500 or higher
What it is: Unlock pays a lump sum for a share of the home's future value, with no monthly payments and a 10-year term. It says it invests in primary residences, second homes and rental properties. You need at least 30% equity, a home worth $175,000 or more and, for an investment property, rental income you are able to verify.
The catch: Unlock says its pricing is typically higher for a rental than for a primary residence, that it typically offers more cash when the home is your primary residence, and that it may not invest in rentals in certain areas. It charges an origination fee of 4.9%.
You plan to keep the property longer than 10 years
What it is: Point's Home Equity Investment pays a lump sum with no monthly payments, no income requirements and no need for perfect credit, over a 30-year term. Its help center says investment properties and second homes are eligible, and that you may rent the property out.
The catch: Point shares in the home's future appreciation, so buying back your equity costs more if the home gains value. Investment properties and second homes go through different underwriting criteria than primary residences, a property held in an LLC is not eligible, and the home has to be worth at least $155,000. The processing fee is up to 3.9%, with a $2,000 minimum.
You own a second home in one of 12 states
What it is: Nada pays a lump sum with no monthly payments for a share of the home's future value. Its eligibility page lists primary, secondary and investment properties. A second home gets the same terms as a primary home: a 500 minimum credit score and up to 30% of the home's value or $600,000.
The catch: An investment property needs a 720 credit score with no late payments in the last 24 months, and it is capped at $100,000 and 50% combined loan-to-value. Nada asks for proof of employment and charges a 3% origination fee plus a 1.5% underwriting fee and a 0.4% processing fee.
What changes when you do not live in the property
Companies treat a home you do not live in as a bigger risk, and some say so in plain words. Point describes investment properties and second homes as perceived to carry more risk, and Unlock says it may lower its financing limit to offset the increased risk when a home becomes a second home or rental. That shows up in five places.
Lower loan-to-value and higher credit scores
| Published term | Primary residence | Second home | Investment property |
|---|---|---|---|
| HELOC, maximum combined loan-to-value (Direct Federal Credit Union) | 80% | 70% | 70% |
| Cash-out refinance, maximum loan-to-value on one unit (Fannie Mae) | 80% | 75% | 75%, or 70% for two to four units |
| Reserves in Fannie Mae's automated underwriting | None on a one-unit home in most cases | 2 months | 6 months |
| Home Equity Agreement, minimum credit score (Nada) | 500 | 500 | 720 |
| Home Equity Agreement, maximum amount (Nada) | 30% of value or $600,000 | 30% of value or $600,000 | $100,000 and 50% combined loan-to-value |
Sources: Direct Federal Credit Union's investment property page, Fannie Mae's Eligibility Matrix dated August 5, 2026 and Selling Guide topic B3-4.1-01, and Nada's eligibility page.
Other lenders draw the line elsewhere. Quorum Federal Credit Union's investment property HELOC goes to 80% combined loan-to-value and asks for a minimum FICO score of 640 in first lien position and 680 in second. Figure asks for 660 on an investment property and 680 on a two to four-unit property.
Rental income has to be documented
Fannie Mae's Selling Guide sets the rules for conventional mortgages sold to Fannie Mae, which is what a typical cash-out refinance is. It treats rent as income only if the income is likely to continue. On a refinance of a rental, the lender works from Schedule E of your tax return and an appraiser's rent schedule. If the property is not on your tax return yet, the lender multiplies the lease amount by 75% and subtracts the property's full housing payment.
Experience counts too. You need at least 12 months of property management experience for positive rental income to count toward qualifying. With less, the rent may only offset the property's own payment.
HELOC and home equity loan lenders set their own rules, so ask each one how it counts rent. Agreement companies ask as well: Unlock requests lease agreements or proof of rental income when the home is an investment property.
You need savings left over after closing
Reserves are the months of housing payments you could still cover from savings once the loan closes. Fannie Mae's automated underwriting asks for two months on a second home and six months on an investment property. If you own other financed properties, it adds 2% to 6% of the unpaid balances on those, depending on how many you have. Cash from the refinance itself does not count as reserves.
How the property is titled matters
For a Fannie Mae cash-out refinance, the mortgage being paid off has to be at least 12 months old, and at least one borrower has to have been on the title for six months. Time the property spent in an LLC you control counts toward the six months, but the title has to move into your own name before closing.
If the rental is held in an LLC, check that before anything else. Figure says it lends on properties held in an LLC, and Splitero lists properties held by a trust or LLC on its eligibility page. Point says it cannot fund a property held in an LLC, and Unison says properties in certain trusts and LLCs may not be eligible. The Unlock, Hometap and Nada pages we read do not address LLC ownership.
There is no federal three-day right to cancel
Under Regulation Z, the right to cancel a home equity line by midnight of the third business day applies to a line secured by your principal dwelling. A line secured by a rental or second home falls outside that rule, so read every document before you sign.
What it costs
A loan costs the APR plus fees. Figure‘s published range for initial APRs is 7.35% to 14.85%, with an origination fee of up to 4.99% of the initial draw. Quorum's investment property HELOC starts at 10.125% APR as of September 17, 2026, and Direct Federal's was 7.75% APR, which is the prime rate plus 0.75%, as of September 18, 2026. Quorum's and Direct Federal's rates are variable, so they move with the prime rate.
A home equity agreement has no APR. You pay a fee when it starts, taken out of the money you receive, and a share of the home's value when it ends. The published fees are 4.9% at Unlock, up to 3.9% with a $2,000 minimum at Point, and 3% plus a 1.5% underwriting fee and a 0.4% processing fee at Nada.
Hometap charges 4.5% of the Investment amount, up to $20,000, and fees are deducted from your investment proceeds rather than paid upfront.
The larger cost comes at settlement, and on a rental it tends to be higher. Unlock says its pricing is typically higher for a rental property than for a primary residence. Before you sign with any company, ask what percentage of the home's future value it would receive and whether there is a cap on that amount.
More: Hometap review, with a worked settlement example
What the IRS says about the interest
These points come from the 2025 editions of IRS Publication 527 and Publication 936, which were the latest on IRS.gov when we checked and are written for 2025 tax returns. Rules for later years may differ.
Mortgage interest on a rental is a rental expense. Publication 527 says you can deduct mortgage interest you pay on your rental property. If you refinance a rental for more than the previous balance, the interest on proceeds not related to rental use generally cannot be deducted as a rental expense.
A second home has to be used as a home. Publication 936 says interest on a home equity loan or line of credit is deductible as home mortgage interest only if the money is used to buy, build or substantially improve the home that secures the loan, and that home must be your main home or second home. If you rent a second home out for part of the year, you must also use it yourself for more than 14 days or more than 10% of the days it is rented at a fair rental, whichever is longer. Otherwise it is treated as rental property.
Borrowing against your own home to fund the rental. Publication 936 says interest on mortgage proceeds used for business, investment or other deductible activities can be deducted as that kind of expense, subject to any limits that apply, and its Table 2 points interest incurred to produce rents to Schedule E. The allocation rules are technical, so keep the borrowed money separate from personal spending and have a tax professional confirm the treatment.
Home equity agreements. Neither publication covers them. Unlock‘s FAQ says its understanding is that the cash is not taxable when you receive it, and that it does not give tax advice.
How to choose
Start with the payment. With a HELOC, a home equity loan or a refinance, you pay interest every month and keep all of the home's appreciation. With a home equity agreement, you skip the monthly payment and give up a share of the home's future value. If the rent does not comfortably cover a new payment, that points toward an agreement or toward borrowing less.
More: HEI vs HELOC: costs, requirements and how to choose
Check your credit score against the published minimums. Figure asks for 660 on an investment property. Hometap‘s minimum is a FICO score of 575. Unlock and Point start at 500, and Nada asks for 720 on an investment property. If your score is the sticking point, see our guide to getting a home equity loan with bad credit.
Match the term to your plan for the property. Unlock's term is 10 years and Point's is 30. A Hometap Investment has a 10-year term. If you expect to hold the rental for decades, a 10-year deadline means settling from savings or refinancing along the way.
Think twice before putting your own home up for the rental. A HELOC on your primary residence is usually the easiest of the five to get, and it carries the three-day right to cancel. It also means a bad year for the rental becomes a risk to the home you live in.
How to tap equity in a rental or second home, step by step
- Work out your equity. Subtract every loan secured by the property from what it is worth today. The lenders and companies above generally expect 20% to 30% of the value to remain as your equity.
- Decide whether the property is able to carry a payment. Compare the rent, after vacancies and upkeep, with the payment on a loan. If it does not fit, look at an agreement or a smaller amount.
- Check eligibility before you apply. Use the table above for property type, then confirm your state and how the title is held, especially if the property is in an LLC.
- Gather the rental paperwork. Have your lease, Schedule E from your last tax return, mortgage statement and insurance declarations page ready.
- Get more than one quote. Compare a loan offer with an agreement estimate side by side. Figure, Unlock and Nada say that checking your rate or estimate uses a soft credit inquiry that does not affect your credit score.
- Read the ending before you sign. For a loan, that is the rate, the draw rules and the repayment period. For an agreement, it is the percentage of future value, any cap and the date by which you must settle.
HELOC on investment property FAQ
Yes. Fewer lenders offer one than on a primary residence, and those that do tend to ask for a higher credit score and lend a smaller share of the property's value. Figure says its home equity line is available on primary, secondary and investment residences, with a minimum credit score of 660 for investment properties.
Yes. To a lender, a rental is an investment property, so the same rules apply. Expect to document the rent with a lease or Schedule E of your tax return, and expect a lower maximum loan-to-value than on the home you live in. Direct Federal Credit Union, for example, lends up to 70% of combined loan-to-value on investment properties and 80% on primary residences.
Yes. Lenders that take investment properties generally take second homes as well, and some treat a second home more gently. Figure‘s 660 minimum credit score applies to investment properties, while Direct Federal Credit Union holds second homes and investment properties to the same 70% combined loan-to-value.
Yes, from some lenders. A home equity loan pays out one lump sum, usually at a fixed rate, and is repaid in monthly installments. Fewer lenders offer it on homes the owner does not live in, so ask about the maximum loan-to-value and minimum credit score first.
Some companies accept them. Unlock, Point and Nada say on their own websites that rental or investment properties are eligible, with different or tighter terms than for a primary residence. Hometap lists vacation and rental properties among the property types it invests in. See how they compare in our guide to the best home equity agreement companies.
IRS Publication 527 for 2025 returns says you can deduct mortgage interest you pay on your rental property as a rental expense. If you refinance for more than the previous balance, interest on proceeds not related to rental use generally cannot be deducted as a rental expense. A tax professional should confirm how the rules apply to you.
How we checked and sources
This guide is the editorial view of smarts.co, built from primary sources read on October 6, 2026. For each company we read its own eligibility, pricing and FAQ pages and recorded what it says about rentals, second homes and investment properties. Where a company's pages were unclear or contradicted each other, we said so and did not feature it. We did not submit applications, and we did not give any company a score.
- Figure: Home Equity Line page and HELOC FAQs (figure.com)
- Hometap: FAQs (hometap.com)
- Unlock: FAQs (unlock.com)
- Point: help center articles on basic eligibility, second homes and investment properties, renting your property and available states, and the Home Equity Investment page (point.com)
- Nada: Eligibility and Pricing pages (nada.co)
- Splitero: Eligibility page and FAQs (splitero.com)
- Unison: FAQs on property types, owner occupancy and renting (unison.com)
- Direct Federal Credit Union: Home Equity Investment Properties page (direct.com)
- Quorum Federal Credit Union: Investment Property HELOC page (quorumfcu.org)
- Fannie Mae Selling Guide: B3-3.8-01, General Rental Income Information and B3-3.8-02, Rental Income from the Subject Property
- Fannie Mae Selling Guide: B3-4.1-01, Minimum Reserve Requirements and B2-1.3-03, Cash-Out Refinance Transactions
- Fannie Mae: Eligibility Matrix dated August 5, 2026 (fanniemae.com)
- Consumer Financial Protection Bureau: Regulation Z, section 1026.15, Right of rescission
- IRS: Publication 527 (2025), Residential Rental Property
- IRS: Publication 936 (2025), Home Mortgage Interest Deduction
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$15,000 to $750,000. Credit score of 660 or higher for investment properties. Available in 48 states and DC.
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