Texas real estate investors often have significant equity tied up in their rentals. An investment property HELOClets you turn that equity into a revolving line of credit without selling or refinancing the property's existing mortgage. For current pricing, see the investment property HELOC page.
Investment property HELOC terms
| Line amount | $25,000 – $500,000 |
|---|---|
| Minimum FICO | 640 |
| Max CLTV, 720+ FICO | 90% |
| Max CLTV, 700–719 FICO | 85% |
| Max CLTV, 640–699 FICO | 75% |
| Draw period | 3 years, interest-only on the amount drawn |
| Drawn at closing | 75% of the line |
| Ownership | Your personal name (no LLC or trust) |
| Typical close | 12–15 days |
Why rental HELOCs in Texas work differently
The rules in Texas Constitution Art. XVI §50(a)(6)— the 80% CLTV cap, the 12-day notice, the 3-day rescission period, and the other homestead protections — apply to your homestead. A non-owner-occupied rental isn't your homestead, so those limits don't apply. That's why an investment property can qualify for up to 90% CLTV with a 720+ FICO, compared with the 80% cap on the home you live in. The Texas rental property HELOC hub covers this in more detail.
How much can you access?
Example: a rental worth $300,000 with a $160,000 mortgage, owned by an investor with a 725 FICO. At 90% CLTV the combined limit is $270,000, leaving room for a line of up to $110,000, subject to credit, income, and appraisal. With a 690 FICO (75% CLTV), the combined limit is $225,000 and the room is $65,000.
Common investor uses
- Down payment on the next property. Draw from the line, close the purchase, then pay the line down from cash flow or a later refinance.
- Renovations. Fund upgrades between tenants or improvements that support higher rents.
- Reserves. Keep a line available for repairs, vacancies, or capital expenses.
Requirements
- Property in Texas, held in your personal name at closing
- Minimum 640 FICO; CLTV tier set by your score
- Income verification, including information on the property's rental income
- Property valuation
Explore by market
We have local pages for rental property HELOCs across Texas, including Dallas, Houston, San Antonio, and Austin. To see your numbers, use the investment property pricer — the rate check uses a soft credit pull.
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