Unlock Your Equity Without Touching Your Rate
If you bought a rental property a few years ago, there’s a good chance you’re sitting on two very valuable things: serious equity and an interest rate you’d never give up voluntarily.
Selling feels wrong. Refinancing feels worse. So the equity just sits there while your next investment waits on the sidelines.
There’s now a smarter way forward.
Meet the DSCR HELOC
If that sounds like alphabet soup, here’s what it actually means for you: a line of credit on your rental property that qualifies based on what your property earns in rent—not your personal income, not your W-2, not your debt-to-income ratio.
Your low first mortgage stays exactly where it is. Untouched.
What It Looks Like in the Real World
Say you have a rental worth $430,000. You owe $206,000 on a 4.375% mortgage and your property cash flows over $900 a month. You’re not selling. You’re definitely not refinancing.
But you have roughly $224,000 in equity sitting idle, and you’d like to put some of it to work.
With a DSCR HELOC at 70% combined loan to value, you could access up to about $95,000—without touching your first mortgage, without selling, and without surrendering that rate.
If you draw $84,500 at an 8% rate, the monthly interest-only payment is around $563.
You’re still cash flow positive. And now you have capital to buy your next property.
The Basics at a Glance
- Qualify using rental income, not your W-2
- Up to 70% combined loan to value
- Minimum credit score of 680
- Loan amounts from $75,000 to $500,000
- Interest only for the first 10 years of a 30-year loan
- Draw periods of 3 or 5 years
- Rates between 8–11% depending on credit score and LTV
Once the 10-year interest-only period ends, your payments will go up as you start paying down principal, so it’s worth reviewing the full loan terms before you draw.
Your Equity Shouldn’t Just Sit There
Every month that equity stays locked up is a month it’s not working toward your next property. The DSCR HELOC exists for exactly this situation—investors who built something smart and want to keep building without starting over.
If you want to run your numbers, contact us and we’ll connect you directly with the lender. We’ll figure out quickly whether this makes sense for your situation.
______________________________________________________________________________________________
DISCLAIMER: All financial information is deemed reliable but not guaranteed. Performance & projections are estimated and subject to change. The provider shall be held harmless if returns are not met. All Investments have risks and Investors are urged to perform their own due diligence. Cash flow amounts are estimated and are subject to change.