HELOC on Rental Property: Home Equity Line of Credit Explained - Total Mortgage

Abstract

A HELOC, or home equity line of credit, is a loan that uses the equity you’ve built up in your home as collateral. You can expect to borrow as much as 85 percent of the value of your home after deducting any remaining mortgage balance. There are multiple advantages tied to taking a HELOC on a rental property, such as tax advantages. Borrowers who get a HELoc on an investment home can use the proceeds to improve the proceeds. Browsers are likely to use the money. The IRS can use to write a tax on the property.