HELOC vs. DSCR Loan
Which one is right for you?
When it comes to financing rental properties, not all loans are created equal. A Home Equity Line of Credit (HELOC) and a Debt Service Coverage Ratio (DSCR) Loan offer two different ways to access capital, each suited to different real estate goals.
Get the funding you need—fast and without the hassle of traditional banks
Understanding how they work can help you choose the best option for your investment strategy.
What is a HELOC?
A HELOC is a flexible, revolving line of credit that lets you borrow against the equity in your home or investment property.
- Think of it as a credit card backed by your house—you can tap into it when you need funds and pay it back on your schedule.
- With Figure’s HELOC, you can access up to $400K1navigates to numbered disclaimer with funding in as little as 5 days2navigates to numbered disclaimer, making it a great option if you want financial flexibility.
What is a DSCR Loan?
A DSCR Loan is designed for real estate investors. Instead of using your personal income to qualify, it looks at your rental property's cash flow.
- Your DSCR = Net Operating Income (NOI) / Total Debt Service. If your rental income covers your loan payments (a DSCR above 1.0), you’re a solid candidate for financing.
- With Figure’s DSCR Loan, you can get up to $1M in funding—without W-2s, tax returns, or unnecessary paperwork.3navigates to numbered disclaimer
HELOCs vs. DSCR Loans
Compare HELOCs and DSCR loans side-by-side to help you make an informed decision.
| Figure HELOC | Figure DSCR Loan | |
|---|---|---|
| Best for | Homeowners leveraging home equity | Real estate investors financing rental properties |
| Approval process | Based on home equity & personal credit score | Based on rental income (no W-2s, no tax returns) and personal credit score |
| Speed | Funding in as little as 5 days2navigates to numbered disclaimer | Funding in as little as 5 days4navigates to numbered disclaimer |
| Loan amounts | Up to $400K1navigates to numbered disclaimer | Up to $1M (No appraisal under $400K)3navigates to numbered disclaimer |
| Usage flexibility | Can be used for any purpose | For investment properties |
| Repayment type | Revolving credit (like a credit card) | Fixed-term mortgage loan |
| Investor-friendly | Available for homeowners & some investors | Designed specifically for real estate investors |
Which one should you choose?
Learn why Figure’s DSCR could be the better choice
Figure’s DSCR Loan is a financing solution built for real estate investors who want to expand their portfolios without the hassle of traditional loan approvals. Figure’s DSCR loan is designed for real estate investors, letting you qualify based on your rental income, not personal income.
With funding in as little as 5 days, you can act fast when the right investment opportunity comes along.4navigates to numbered disclaimer
How to get a DSCR Loan with Figure
No matter which option fits your strategy, Figure has the right solution
for you backed by fast funding and cutting-edge technology.
- 1
Complete our 100% online application
Based on rental income (No W-2s, no tax returns) and pre-qualification won’t affect your credit score.
- 2
Get pre-qualified in minutes, funding in as few as 5 days4navigates to numbered disclaimer
Get up to $400K funded in as few as 5 days (even complex deals close in under 9).
- 3
Grow your rental portfolio
With Figure, you’re getting fast, hassle-free funding tailored for real estate investors. No waiting, no unnecessary paperwork.