Can I HELOC my rental property to pay for repairs on my primary residence?

Yes. Investment-property HELOC proceeds can be used for anything, including primary-residence repairs. Investment HELOCs typically allow up to 75-80% CLTV.

HELOC on an investment property has no restriction on how you use the funds - it's a general-purpose line secured by the rental, available to spend on a primary-residence roof, a new car, business capital, or another rental down payment. The terms are slightly different from a primary-residence HELOC: rate is typically 0.5-1.0% higher (investor-property HELOCs are riskier from a lender perspective); max CLTV is typically 75-80% (vs 85-90% on primary); draw period 5-10 years standard; minimum line size $25K-$50K at most lenders. Example: rental worth $250K with $6.5K mortgage balance. At 75% CLTV, total allowed lien = $187.5K. Minus the $6.5K existing = $181K available HELOC line. You draw $25K for the primary residence roof, pay only interest on $25K (not the full line), and the unused $156K stays available. Tax notes: HELOC interest on investment-property security used for personal expenses is NOT mortgage-interest-deductible under current law (post-TCJA). If you used the proceeds to improve the rental itself, the interest would be deductible against rental income. For a roof on your primary - personal use - no interest deduction on the HELOC.

People also ask

HELOC or cash-out refi on the rental?

HELOC keeps the existing mortgage rate intact (useful if it's sub-4%). Cash-out refi replaces the whole mortgage at today's rate. With $6.5K balance, HELOC clearly wins - paying off $6.5K via refi means closing costs on the new $X loan that wouldn't be worth it.

Is HELOC interest deductible if I use it for the rental property?

Yes - interest on the portion used to improve / maintain the rental is deductible against rental income. Keep clear documentation showing the use of proceeds.

Does the rental need to be tenanted to get a HELOC?

Most lenders prefer it tenanted but a few allow vacant rentals if the borrower has strong income elsewhere. The DSCR ratio isn't calculated on HELOCs the way it is on first-position DSCR loans.

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6.250%

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