Equity line for rental Property

Does anyone know if you can obtain an equity line on rental property? The equity line would be much cheaper than refinancing the property and I need to pull some equity out of one of my properties.

Thanks in advance-


Absolutely you can. Visit with your loan officer that did your original loan. If you don’t like what they have to say then shop around a bit with other lenders and see what terms they give. More than likely the bank you have your first loan with should be your best bet the get the rates you want. That is if they are on the ball :slight_smile: Obviously how much you can pull depends on your equity position.



Thank you.! I appreciate you taking the time to answer my question!
Next question is, are the fees a lot higher if I go with a different lender? My goal is to avoid paying large closing fees.

Thanks again-


Again you will have to shop around. Get a copy of your credit report so you can give it to lenders. That way they are not pulling your credit and putting unneccesary inquires on your report. Good luck and happy hunting.


Your closing costs should be slim to none on a heloc with a broker or a bank.

I just took one out on a rental property, through my credit union. Rate was about 1% higher, but I paid absolutely no closing costs.

Wow…thanks everyone. So the next question is why would a person refinance to pull equity out of a non owner occupied? Is there any reason for a broker to recommend a refinance instead of an equity line other than the large fees you pay with a refi?


Depending on your situation, HELOCs can often carry much higher interest rates. So, if you plan on maxing it out and paying it back over the long term, it usually works out better to just do a cash out refi or a home equity loan (2nd mortgage).

Also, HELOCs are adjustable and the rates are fairly high. If you plan on keeping this as a rental for a while, then you might find that you save money (despite the higher closing costs) by refinancing and pulling cash out on a single loan. You might even get a lower rate than you are currently at.