How to use this calculator
- Plan. "Buy a home" borrows against the home you live in; "Tap one I own" borrows against a second home or rental you have.
- Home. The home the line sits on: its value and everything owed.
- Details. Price, rates, rent and monthly costs: taxes, insurance, HOA dues, repairs.
Which lenders offer a HELOC on a second home or rental
What each lender says on its own pages (saved October 7, 2026), A-Z, not ranked. PenFed's row comes from a browser copy of its page.
| Lender (A-Z) | Second home | Rental | Cap it publishes |
|---|---|---|---|
| ChasePrimary or secondary home; no investment homes; no HELOCs in Texas. | Yes, not in Texas | No | 80% for any home ("typically") |
| CitizensSecond and vacation homes yes; investment property no. | Yes | No | Not published for these homes |
| Fifth Third BankEquity Flexline: +0.25 point for a home the owner does not live in. | Not stated | Yes, rate + 0.25 point | Not published |
| KeyBankIts 80% cap applies only to owner-occupied homes. | Not stated | Not stated | 80%, owner-occupied homes only |
| Navy Federal Credit UnionSecond Home and Investment Loan Programs at higher margins; no HELOCs in Texas. | Yes, own program | Yes, own program | Not published |
| PenFed Credit Union85% outside Texas on homes you live in and second homes. (browser copy) | Yes | Not listed | 85% for second homes outside Texas |
| PNC BankIn Texas, only a primary residence (homestead). | Not stated, Texas: no | Not stated, Texas: no | Texas: 80%, primary home only |
| Regions BankPrimary or secondary residence in a Regions branch state. | Yes | Not listed | Not published |
| TD BankInvestment Property rates tab; closing costs on investment properties; a footnote names only primary or secondary homes. | Yes | Yes, see note | Not published; depends on occupancy |
| TruistSecond home if you stay 14+ days a year; no investment homes. | Yes, 14+ days a year | No | Not published |
The other 6 (Bank of America, BMO, Figure, Huntington Bank, Spring EQ, U.S. Bank) do not say whether they lend on these homes on the pages we saved. To test your numbers against every published rule, open the HELOC requirements check and set Property to "Second home" or "Rental".
Using a HELOC on your home to buy another one
Fannie Mae's Selling Guide, the rulebook for mortgages Fannie Mae buys, accepts money borrowed against real estate you own as a source of the down payment and closing costs, calling it "a return of equity." The lender must count that loan's monthly payment as a debt when it qualifies you.
| The home you buy | Largest loan | Least down |
|---|---|---|
| Second home, 1 unit | 90% | 10% |
| Investment property, 1 unit | 85% | 15% |
| Investment property, 2-4 units | 75% | 25% |
Fannie Mae Eligibility Matrix, August 5, 2026. Closing costs come on top: typically 2-5% of the price, says the CFPB.
Example: a $300,000 rental with 15% down and 3% closing costs needs $54,000. A $450,000 home with $250,000 owed has a line of $132,500 at 85%. The line costs $360 a month interest-only at 8%, the $255,000 mortgage $1,766 at 7.4%. After $2,500 rent and $600 of costs, you add $226 a month.
Borrowing against a rental or second home you own
Published rates for these homes are higher. Navy Federal lists margins over prime it has used recently: 1 point on its standard line, 2 for second homes, 3 for investment homes. Fifth Third adds 0.25 point. The example rates here are the prime rate (7% on October 2, 2026) plus those margins: 9% for a second home, 10% for a rental.
Only PenFed publishes a cap that names second homes: 85% outside Texas. No lender in the set publishes one for rentals, so the calculator starts at 75%, Fannie Mae's cash-out refinance limit for a one-unit investment property, labeled as an example.
Example: a $300,000 rental with $150,000 owed supports a $75,000 line at 75%. Drawing $50,000 at 10% costs $417 a month interest-only; with a $1,100 mortgage, $2,400 rent covers the costs 1.19x (rent ÷ all monthly costs).
HELOC or cash-out refinance on a rental
A cash-out refinance replaces the rental's mortgage with a larger one. A HELOC keeps that mortgage and its rate and adds a line you draw as needed.
| HELOC on the rental | Cash-out refinance | |
|---|---|---|
| Current mortgage | Stays | Paid off |
| Most you can borrow | No published cap in our set | 75% of value, 1 unit; 70% for 2-4 units |
| Lenders | 3 of 16 we track say they lend on rentals | Conventional lenders selling to Fannie Mae |
On a one-unit home you live in, the cash-out limit is 80%. To compare costs over your years, see cash-out refinance vs. HELOC.
Risks to weigh
- The home behind the line. The CFPB warns that if you fall behind on a HELOC, you could lose your home. With a line on the home you live in, that home is at risk even though the money bought a rental.
- The line can shrink. Regulation Z lets a lender stop draws or cut the limit while the home's value is well below its appraisal, or if it reasonably believes a material change in your finances means you cannot repay. A down payment you plan to draw later may not be there.
- Rates move. A HELOC rate is usually variable: an index such as prime plus a margin.
- Texas caps home equity debt on a homestead at 80% of its value; Chase and Navy Federal offer no HELOC in Texas at all; PNC lends there only on a primary home. If financing your primary residence in the Lone Star State, our Texas HELOC calculator walks through constitutional borrowing caps.
Taxes (general information, not tax advice): federal rules generally assign interest by what the borrowed money pays for, not by the property securing the loan (Treas. Reg. 1.163-8T), and IRS Publication 527 lists mortgage interest on a rental as a rental expense. Interest on a line against the home you live in, spent to buy a second home you do not rent out, is not deductible home mortgage interest, because the loan must be secured by the home it buys or improves (IRS Publication 936). Interest on money spent on the home that secures the line follows different rules, explained on our HELOC tax deduction page.
The example mortgage rate, 7.4%, is Freddie Mac's 30-year average on October 8, 2026, for homes owners live in; a quote for a rental may differ.
HELOC on a rental or second home: questions people ask
Can a HELOC be taken out on a rental property?
Yes, from some lenders. Of the 16 lenders whose HELOC terms we track, Navy Federal has an Investment Loan Program, Fifth Third adds 0.25 point to the rate when the owner does not live in the home, and TD Bank charges closing costs on lines for investment properties. Chase, Citizens and Truist exclude investment homes, and none publishes a borrowing cap for rentals.
Can I pull equity out of my investment property?
Yes: with a HELOC or home equity loan from a lender that accepts rentals, or with a cash-out refinance that replaces the mortgage with a larger one. For a conventional cash-out refinance, Fannie Mae caps the new loan at 75% of a one-unit investment property's value and 70% for two to four units.
Source: Fannie Mae Eligibility Matrix
Is it smart to buy a rental property with a HELOC?
It depends on whether the rent covers every payment with room to spare. A HELOC adds a second payment, usually at a variable rate, on top of the new mortgage, and when the rent falls short you pay the difference from your income. If the line sits on the home you live in, that home secures the debt.
Can I use my paid off house to buy another?
Yes. With nothing owed, the whole value counts: at an 85% cap, a $400,000 house supports a line of up to $340,000, subject to the lender's review. Fannie Mae accepts money borrowed against real estate for the down payment and closing costs, and the new mortgage lender counts the HELOC payment as a debt.
How to buy a second house without selling first?
Common ways are a HELOC or home equity loan on your current home for the down payment, or a cash-out refinance of it. The lender of the new mortgage counts the payment on the borrowed money as a debt, so both homes' payments have to fit your income at the same time.
How much of a down payment would you need on a $200,000 house?
On a conventional loan sold to Fannie Mae, at least 10% ($20,000) for a one-unit second home and 15% ($30,000) for a one-unit investment property, per its Eligibility Matrix dated August 5, 2026. Closing costs add 2-5% of the price, per the CFPB: $4,000 to $10,000.
How much would a $100,000 HELOC cost per month?
At 8% (prime, 7%, plus 1 point, our example), about $667 a month interest-only, or $836 repaid over 20 years. At 10%, this page's example for a rental, it is $833 interest-only or $965 over 20 years. HELOC rates are usually variable, so these payments change when the index moves.
Sources
- Fannie Mae: Eligibility Matrix, August 5, 2026
- Fannie Mae Selling Guide B3-4.3-15
- CFPB: Determine your down payment
- CFPB: What is a HELOC?
- CFPB: HELOC booklet
- 12 CFR 1026.40(f)(3)(vi)
- Texas Constitution, art. XVI, sec. 50
- 26 CFR 1.163-8T
- IRS Publication 527 (2025)
- Freddie Mac PMMS
- FRED: prime rate (DPRIME)
- Bank of America
- Chase
- Chase HELOC calculator
- Citizens
- Fifth Third
- KeyBank
- Navy Federal HELOC disclosure
- Navy Federal
- PenFed - browser copy, October 6, 2026
- PNC
- Regions
- TD Bank
- TD Bank HELOC rates
- Truist
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- Texas HELOC calculatorYour Texas HELOC limit under the 80% homestead rule, the payment and the Texas rules that apply.
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- HELOC for debt consolidationPaying off credit cards with a HELOC or a personal loan: total cost, payment and payoff date.
- HELOC for home improvementYour renovation budget with a cushion, whether it fits your line, and the interest and payment as you draw.