DSCR HELOCs and DSCR seconds: let the rent unlock the equity in a rental.
Plenty of landlords sit on real equity, with a first mortgage they never want to refinance and tax returns that show almost no income. A DSCR second lien reaches that equity using the number that matters most on a rental: the rent.
- The rent does the qualifying; your tax returns stay out of it.
- It sits behind your current mortgage, which keeps its balance and terms.
- Two shapes: a revolving DSCR HELOC or a one-time DSCR second mortgage.
- Your loans combined can reach 75% of the property's value.
- 1–4 unit rentals, in your own name or your LLC.
- No hard credit pull to see your options.
Rather just talk? Call or text us at (949) 401-7593
By Arran Amorozo, NMLS #1491497 · West Capital Lending, Inc. · Content last reviewed:
The short answer
With a DSCR second lien, a rental's rent qualifies you for a credit line or a lump sum behind your existing mortgage, up to 75% of the property's value counting both loans. If your household income documents well, our standard HELOC can go further on the same rental: up to 90% combined (80% in Texas). Same goal, two different ways to qualify.
Two ways to take the money
DSCR HELOC
A revolving line. Pull money as projects call for it, pay it down, and use it again. Good for a rehab paid in stages, a reserve you hope not to touch, or cash waiting on the next deal.
DSCR second mortgage
One lump sum with a fixed payoff schedule (some lenders call it a DSCR HELOAN). Good when you know the exact number: one payoff, one project, one down payment.
Why a second lien instead of a refinance
To get cash from a refinance, you replace the entire first mortgage. A second lien leaves that first loan exactly as it is and only puts the new money on new terms. If your current first mortgage is one you'd never get again, that alone settles it.
Years of appreciation build equity you can't spend until you can reach it. A DSCR second turns it into a down payment on rental number two (or twelve), a renovation that pushes the rent up, or the payoff of expensive debt, and you don't have to sell anything.
And nobody asks about your Schedule E. Depreciation makes most landlords look like they barely earn a thing on paper. A DSCR file asks one question: does the rent carry the payment?
How the file is judged
In effect, the property is the borrower. Its rent, from your lease or the appraiser's estimate of market rent, is held up against the full monthly payment on both loans. Title can sit in your own name or your LLC, on rentals with 1–4 units.
What you owe on the first plus the new second can add up to 75% of the property's value, whether you take a line or a lump sum. Credit minimums and pricing move with the lender, the property and the ratio itself, so we quote them on your real numbers instead of printing one figure that would be wrong half the time.
To start, we need your ID, your current mortgage statement, your insurance, and your lease or the appraiser's rent estimate. Tax returns aren't on the list.
The numbers, plainly
| Term | DSCR second lien | Our standard HELOC on a rental |
|---|---|---|
| How it qualifies | The rent on the property | Household income (no income documents at 680+ on lines of $150,000+) |
| Max combined loan-to-value | 75% | 90% (80% in Texas) |
| Shapes | A revolving line or a one-time lump sum | A revolving line with a 5-year draw window |
| Credit | Set by the lender and the file | 620+ (an LLC-titled property needs a 700+ personal score) |
| Amounts | Quoted on your file | $50,000 to $5,000,000 |
| Property | Rentals with 1–4 units | 1–4 units, primary or investment |
| Vesting | Your own name or your LLC | Your own name or your LLC |
| Your first mortgage | Stays as it is | Stays as it is |
| Where | Confirmed by state on a call | In all 35 states + D.C. where Arran is licensed |
Not sure which one your numbers favor? We'll run both.
How far each one reaches on the same rental
A rental worth $500,000 with $250,000 owed on the first mortgage:
| Route | Combined limit | Most the new money can be |
|---|---|---|
| DSCR second lien | 75% = $375,000 | $125,000 |
| Standard HELOC | 90% = $450,000 | $200,000 |
Before the rent test (DSCR) or the income test (HELOC), and before closing costs.
When a full refinance is the better call
If the first mortgage isn't anything special, or you'd simply rather have one loan than two, a DSCR cash-out refinance may serve you better, and ours skips title seasoning at $100,000 and up. We'll lay both side by side on one call and tell you which way the numbers lean.
Common questions
What's a DSCR HELOC, in plain terms?
A revolving credit line on a rental that you qualify for with the property's rent rather than your tax returns. It sits behind the mortgage you already have, and that mortgage doesn't change.
How is a DSCR second mortgage different?
It's the lump-sum version: one payout against the rental's equity, qualified the same way on the rent, with a fixed payoff schedule instead of a line you can draw again.
Will you need my tax returns?
No. The file compares the rent with the payment. To start we need your ID, your current mortgage statement, your insurance and your lease or the appraiser's rent estimate.
Does my current mortgage change?
No. A second lien leaves the first loan's balance and terms exactly where they are. Pulling the same cash with a refinance would mean replacing that first loan entirely.
How much can I get?
Together, the first mortgage and the new second can reach 75% of the property's value. On a $500,000 rental with $250,000 owed, that's up to $125,000, as long as the rent supports it.
Can the property be in my LLC?
Yes. Holding rentals in an LLC is routine for DSCR loans on 1–4 unit properties, and holding them in your own name works too.
A DSCR second or your standard HELOC: which should I use?
If your household income documents well, our standard HELOC goes further: up to 90% combined (80% in Texas). If your tax returns are the obstacle, the DSCR second qualifies on the rent instead, up to 75%.
Should I take a line or a lump sum?
If you know the exact amount, take the lump sum. If you want room for staged draws or standby cash, take the line. Many investors decide after seeing both priced for their file.
Does checking my options affect my credit score?
No. We look at your options with a soft credit check, which has no effect on your score. A hard check only happens later, with your OK, if you decide to apply.
See your real numbers in 60 seconds.
The quiz on our HELOC page checks your scenario against our lending rules in about a minute. No hard credit pull, and your information is never sold.
Check my HELOC options →Rather just talk? Call or text us at (949) 401-7593
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