REAL ESTATE INVESTOR FINANCING
HELOC Guide
How CLTV works, primary vs investment-property starting matrices, and the variable-rate draw structure.
What It Is
A home equity line of credit turns equity in an existing property into reusable revolving capital — draw funds, use them, repay, and draw again during the draw period. Available on primary residences and applicable investment-property options (including eligible LLC-owned investment property depending on the program).
What Problem It Solves
An investor has equity in an existing property and wants reusable capital for the next acquisition, EMD, renovation, or reserves — without selling the property. A HELOC monetizes that equity as a revolving line.
When It's Commonly Used
Next-acquisition down payment, EMD, renovation and rehab, holding costs, reserve capital, and auction acquisitions where reusable equity capital is preferred over a lump sum.
Who Generally Qualifies
Starting matrix: 620+ FICO for a primary residence; 700+ FICO for LLC-owned investment property. Individual lender requirements may be higher — the starting matrix is a program guideline, not a universal rule. Equity (CLTV) and income/DTI apply.
How CLTV Works
Combined Loan-to-Value = (existing mortgage + HELOC) ÷ property value. Available credit depends on property value, the existing first mortgage, the maximum permitted CLTV, borrower credit, income/DTI, property type, and occupancy.
Variable-Rate Nature
HELOC rates generally track Prime plus an applicable lender margin, so the rate can change over time. No permanent interest rate is published here because rates move with the market. Interest is generally charged only on the amount drawn during the revolving period.
When to Use a Different Product
If the need is unsecured capital (no equity to draw on), unsecured term-loan stacking or 0% credit card stacking fits. If the need is business working capital, a Business LOC is the route. If the core requirement (contract, spread, seller carry, or funded end buyer) is missing, a different product — or a restructured transaction — is usually a better fit than forcing the structure.
How Green Fire Structures It
Green Fire reviews the property value, existing mortgage, available equity, credit, and income/DTI, then identifies whether a primary-residence or investment-property HELOC program fits and sizes the line accordingly.
Frequently Asked Questions
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Get Your TermsRelated Guides
What Is Gap Funding?
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Read GuideDebt Consolidation Guide
How reducing utilization prepares the file for larger capital, and why no specific FICO gain is guaranteed.
Read GuideUnsecured Term Loan Stacking Guide
How unsecured term-loan stacking works, the 680+ preferred matrix, and why borrowed funds don't auto-count as liquidity.
Read GuideEducational content only. Guides describe how financing structures generally work and are not approvals, commitments, or guarantees of terms. Programs, eligibility, leverage, rates, fees, terms, timelines, and availability vary by provider, property, location, borrower qualifications, documentation, and deal structure. All financing is subject to independent provider review, underwriting, and final approval. Green Fire Strategies does not guarantee approval, terms, closing, or funding.
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