Best HELOC Lenders for Investment Property in 2026: 7 Options Compared
The best HELOC lenders for investment property in 2026 include PenFed, TD Bank, Third Federal, Figure, Better, Kiavi, and local credit unions. Compare rates, CLTV caps, reserve requirements, and HELOC vs. cash-out refinance for rentals.
Most big banks won't put a HELOC on a rental. The lenders that will this year include a mix of credit unions, portfolio lenders, (learn more about business credit cards vs business line of credit: which is better?) and specialty non-QM providers. Standouts are PenFed Credit Union, TD Bank, Third Federal, Figure, Better, and specialty investor lenders like Kiavi (learn more about sba loan requirements: complete checklist for 2025) and regional/local credit unions. Expect rates roughly 0.5%–1.5% higher than a primary-home HELOC, combined loan-to-value (CLTV) capped around 70%–80%, and cash-reserve requirements.
Here's how to find a lender that lends on rentals and how investment-property HELOCs differ from the primary-home version.
Why investment-property HELOCs are different
Lenders view a HELOC on a rental as higher risk: if a borrower gets into trouble, they'll prioritize the mortgage on their own home over the loan on an investment property. That extra risk shows up in three ways — higher interest rates, lower CLTV limits (you can tap less of your equity), and tougher qualifying (higher credit score minimums, documented rental income, and several months of cash reserves). Many national banks simply don't offer them, which is why the lender list is shorter and leans toward credit unions and portfolio lenders.
The 7 best investment-property HELOC lenders
1. PenFed Credit Union — Best for competitive credit-union rates
PenFed is one of the more accessible national credit unions for equity lending, with membership open to nearly anyone. It has historically been friendlier to non-owner-occupied properties than most big banks, with competitive rates for well-qualified investors.
2. TD Bank — Best big-bank option for rentals
TD Bank is one of the few large banks that will consider HELOCs on investment properties in its footprint, offering the convenience of a national institution with in-branch service.
3. Third Federal — Best for low rates and no upfront fees
Third Federal (in its lending regions) is known for competitive HELOC pricing and low closing costs, and it lends on non-owner-occupied properties for qualified borrowers.
4. Figure — Best for fast, fully online funding
Figure offers a fixed-rate home equity line with a fast, digital application and quick funding. It lends on investment properties in many states, making it a strong pick for investors who want speed and a streamlined process.
5. Better — Best digital experience
Better''s online-first platform provides home equity products with transparent pricing and no origination fees on some products, and it serves investment-property borrowers in eligible areas.
6. Kiavi — Best for professional real estate investors
Kiavi (formerly LendingHome) is built for investors, offering equity and cash-out products underwritten on the property''s performance rather than just personal income. Ideal for scaling a portfolio, though terms are investor-focused rather than consumer HELOC.
7. Local and regional credit unions — Best for flexible underwriting
Community banks and local credit unions often keep these loans on their own books (portfolio lending), which lets them be more flexible on non-owner-occupied properties than national lenders. Worth calling two or three in your market.
Typical requirements at a glance
| Factor | Primary residence HELOC | Investment property HELOC |
|---|---|---|
| Max CLTV | Up to 85–90% | Roughly 70–80% |
| Credit score minimum | ~620–680 | ~700–740+ |
| Cash reserves | Often minimal | 2–12 months typical |
| Rate premium | Baseline | +0.5% to +1.5% |
| Rental income docs | N/A | Leases, tax returns often required |
HELOC vs. cash-out refinance on a rental
A HELOC gives you a revolving line you draw on as needed — good for staggered renovations or keeping "dry powder" for the next deal. A cash-out refinance replaces the whole mortgage with a larger one and hands you the difference in a lump sum, which can make sense if today''s rates are near your existing rate and you want fixed payments. If your current mortgage rate is low, a HELOC lets you tap equity without disturbing that first-lien rate.
How to qualify and get the best terms
Push your credit score above 740, keep documented reserves, and have clean rental income records (leases and Schedule E). Shop at least three lenders including a national credit union and a couple of local portfolio lenders, and compare the full picture — rate, CLTV, draw period, and fees — not just the teaser APR. Because availability is state- and property-specific, always confirm the lender does non-owner-occupied HELOCs in your area before you apply.
The bottom line
Since most major banks avoid rentals, credit unions like PenFed, low-cost lenders like Third Federal, and fast digital options like Figure are the most reliable places to start, with local portfolio lenders offering the most flexibility. Expect higher rates and lower CLTV than a primary-home HELOC, line up strong credit and reserves, and compare several lenders before you commit.
This article is for educational purposes only and is not financial or lending advice. Rates, CLTV limits, and availability vary by lender, state, and property — verify current terms directly before applying.