A Line Of Credit Your Rental Pays For.
A revolving HELOC secured by an investment property and qualified on the rent the building produces.
Equity you can draw on, not a one-time lump sum
The rent carries the qualifying, and the line stays open.
- A home equity line of credit secured by an investment property.
- Held for a business purpose, so it is not for a home you live in.
- Written as a standalone first lien rather than a second behind another loan.
- A thirty year variable term with a three year draw period.
- The first three years are interest only during the draw period.
- On a cash-out refinance the initial draw is at least seventy five percent of the total credit limit.
Investment property only
Business purpose loan
Standalone first lien position
Thirty year variable term
Three year draw period
Interest only during the draw
What is the Saxton DSCR HELOC?
A revolving line on a rental, underwritten on the property rather than on you.
Most equity products hand you a single lump sum and start the clock on repaying all of it. That works for a one-off project. It works less well for an investor who wants money available for the next opportunity, or for a repair that has not happened yet, without paying interest on funds sitting idle.
This is a line of credit instead. It is secured by an investment property, and qualifying is driven by the rent the property produces rather than by your personal income documentation. It is written as a standalone first lien, which means it is not sitting behind another mortgage on the same property.
The structure is a thirty year variable term with a three year draw period, and the first three years are interest only while you are drawing. Where the transaction is a cash-out refinance, the initial draw has to be at least seventy five percent of the total credit limit, so it is worth planning what you actually need before you set the line size.
Why choose the Saxton DSCR HELOC?
For investors who want access to equity rather than a single payout.
Draw What You Need
A revolving line means you are not paying interest on money you have not used yet, which is the main argument against a lump sum.
The Property Qualifies
Coverage is measured on the rent, so your personal tax returns are not the center of the file.
Interest Only To Start
The first three years of the draw period are interest only, which keeps the cost of holding the line low while you deploy it.
A Clean First Lien
This is written as a standalone first lien rather than a junior lien, which changes what is possible on the property.
Plan The Line Size
Because a cash-out draw has a minimum, we would rather size the line properly with you up front than have you commit to more than you need.
Sized Around What You Need
Because a cash-out draw carries a minimum, the size of the line is a decision worth making deliberately rather than by default.
Hear From Homeowners Like You
Frequently Asked Questions
Straight answers about a line of credit on a rental property.
A home equity loan pays out one lump sum and you begin repaying the whole balance. This is a revolving line you draw against as you need it, so you carry interest only on what you have actually used.
No. This is a business purpose loan secured by an investment property.
It is the window during which you can take funds from the line. Here it runs three years, and those three years are interest only.
Yes on a cash-out refinance. The initial draw has to be at least seventy five percent of the total credit limit, so the line should be sized to what you genuinely need.
No. It is written as a standalone first lien position, which is unusual for a line of credit and is worth understanding before you apply.
The qualifying analysis is driven by the property rent rather than personal income documentation, which is how DSCR lending works.
The overall term runs thirty years on a variable structure. We will walk you through how the payment changes once the interest only draw window closes.
Find out what you qualify for
If you would rather have a line available than a lump sum spent, this is the structure. Send us the property and the rents.
Get Pre-Qualified- Consumer Financial Protection Bureau, home equity loan compared with a HELOC
- Consumer Financial Protection Bureau, mortgages
*Loan amounts, rates, terms, and eligibility are subject to credit approval, property and rental income verification, appraisal, and program guidelines. This is a business purpose investment product secured by a non-owner-occupied property. Draw periods, minimum draw requirements and variable rate terms apply. Not all applicants will qualify. Saxton Mortgage, LLC is an Equal Housing Lender.