Investment Property HELOC

Designed for Savvy Investors

Like You.

✓ Unlock up to 80% of your property’s equity

✓ No Refinancing Required

✓ Register HELOC in your name or your LLC

✓ Pay interest only on what you use

What is an Investor HELOC?

Our Investor Home Equity Line of Credit (HELOC), also known as an Investment Property HELOC, is a specialized financial tool tailored for real estate enthusiasts and entrepreneurs. Like its traditional counterpart, an Investor HELOC provides a revolving credit line, but it’s secured against the equity of an investment property rather than a primary residence. With the capacity to tap into up to 80% of your investment property’s equity, this instrument offers notable flexibility for investors. Moreover, its unique feature of allowing registration under an LLC sets it apart, providing an added layer of protection and organization for savvy real estate moguls. Just like a standard HELOC, borrowers benefit from its set draw period. The standout advantage remains: you only pay interest on the funds you use, making it a cost-effective choice for property investments.

Applying for an Investor HELOC

Applying for an Investor HELOC with us is a straightforward affair.

  • Equity Access: Even with a first mortgage in place, you’re able to tap into up to 80% of your investment property’s equity.
  • Quick Turnaround: Our application procedure is finely-tuned, designed to get your HELOC up and running in just two weeks.
  • LLC Registration: A standout feature during your application is the choice to register the HELOC under an LLC, a benefit many real estate investors cherish.

Join them and experience the benefits firsthand.

Strategic Multi-Property Financing

Join the growing trend of savvy investors applying for HELOCs on multiple properties. They’re not just stopping at one property but are strategically leveraging multiple assets to enhance their financial flexibility, allowing them to capitalize on various property ventures at the same time. Don’t be left behind. Tap into this innovative financing strategy today.

Benefits of an Investor HELOC

Made for Real Estate Investors

Designed specifically for property enthusiasts and entrepreneurs, the Investor HELOC allows you to tap into the equity of your investment properties, not just your primary residence. Strategically leverage multiple assets and broaden your financial reach in the real estate market.

Unique LLC Registration

One of the standout features of our Investor HELOC is the option to register it under an LLC. This provides added organizational flexibility and protection, a sought-after benefit cherished by savvy real estate moguls.

Rapid Turnaround Time

Time is of the essence in real estate. Our streamlined application process ensures you have access to your HELOC in just two weeks, so you can act swiftly on investment opportunities as they arise.

Popular Uses for an Investment Property HELOC

Property Acquisition

Use the equity from one property to seize new real estate opportunities. Diversify your portfolio, boost passive income, and grow your property empire efficiently with an Investor HELOC.

Property Upgrades

Use your Investor HELOC to finance renovations, improvements, or even to stage properties for sale. Elevate your properties to their fullest potential and achieve higher rental rates or sale prices.

Business Growth

Invest in your real estate business. Scale operations, hire, or market effectively with flexible capital. The option to register under an LLC ensures seamless financial management for all ventures.

How to get an Investor HELOC

The process for getting an Investor HELOC is simple.

  • Share Your Requirements

    Fill out our online form in just 5 minutes to help us assist you better.

  • Connect with a Loan Partner

    You’ll be connected with an experienced Federal Hill Mortgage Loan Partner ready to help you determine the right product for you.

  • Complete the Process

    Your FHM loan partner will handle the submission of your home equity application, ensuring you can access your funds swiftly.

Common questions about Investment Property HELOCs

  • A regular HELOC is typically secured against the equity in your primary residence, while an Investment Property HELOC is secured against the equity in your investment property. Additionally, Investment Property HELOCs often come with features tailored to the needs of real estate investors, such as the option to register under an LLC.

  • Typically, you can borrow up to 80% of your investment property's equity with an Investment Property HELOC, even if there's a first mortgage in place. However, the exact amount may vary based on your lender and the specific terms they offer.

  • Yes, one of the unique features of many Investment Property HELOCs is the option to register them under an LLC, providing additional organizational flexibility and potential legal protection.

  • Absolutely. Many savvy investors strategically apply for HELOCs on each of their properties, allowing them to leverage the equity from multiple assets and maximize their financial agility in the real estate market.

  • Once you’ve completed the Home Equity Questionnaire, you can expect a response from us within 2 business days. Our team is dedicated to reviewing your details promptly and providing recommendations on the best home equity product tailored for your needs.

  • While the exact time can vary based on individual circumstances, our streamlined application process is designed to get your HELOC up and running in just two weeks.

  • No, the Home Equity Questionnaire is not the actual loan application. It’s a complimentary preliminary service we offer to help you identify which home equity product might be the best fit for your needs. There are no fees associated with submitting the questionnaire or receiving our recommendations. If you decide to proceed with a product we suggest, the actual loan application process will follow, and any associated fees or costs will be detailed at that time.

  • Both HELOC (Home Equity Line of Credit) and HELOAN (Home Equity Loan) are ways to tap into the equity of your home, but they function differently. A HELOC provides a revolving line of credit, allowing you to borrow, repay, and borrow again, much like a credit card, usually over 5-10 years. In contrast, a HELOAN gives you a lump sum amount upfront, which you repay over a fixed term. HELOCs typically have variable interest rates that can fluctuate, while HELOANs offer fixed rates.

  • Second mortgages, such as HELOCs and HELOANs, often come with higher interest rates due to increased risk factors. In the event of a foreclosure, the first mortgage has priority for repayment, leaving second mortgages at a higher risk of not being fully repaid. Moreover, second mortgages add an additional layer of debt on top of the primary mortgage. As a result, to compensate for these risks, second mortgages generally have higher interest rates.

  • For a HELOC, during its draw period (typically 5-10 years), you usually make interest-only payments based on your outstanding balance. Once this period concludes, you enter a repayment phase where you repay both the principal and interest over a set term, usually spanning 10-20 years. In contrast, a HELOAN starts with a fixed repayment term where you make consistent monthly payments covering both the principal and interest over the loan’s duration.

  • Our Investor HELOC comes with a variable interest rate, primarily based on the Prime Rate. The exact rate offered to you will be influenced by several personal financial factors, including your credit score, credit history, and the loan-to-value ratio of your property. This approach ensures that the rate is reflective of both the current market trends and your individual financial situation. We encourage you to get in touch with our team for a more personalized rate based on your specific circumstances.

  • The Investor HELOC is structured with a 30-year term. This term includes an initial draw period during which only interest payments are required. This design is intended to offer flexibility, especially for investors who are focused on effectively managing their cash flow. It's important to understand that this period allows for interest-only payments, which can be particularly advantageous in certain investment strategies. For more detailed information about how this could benefit your specific investment goals, we recommend discussing with our expert team.