Investment Property Line of Credit in Texas
Use equity from rental or investment properties to fund improvements, acquisitions, or project cash flow.
What is an Investment Property Line of Credit?
An Investment Property Line of Credit (ILOC) is a revolving line secured by a first lien on a non-owner-occupied residential property.
Draw what you need during the draw period, repay and re-use the line as projects move.
Who it’s for
- Landlords and long-term rental owners
- Fix-and-flip operators needing finish funds
- BRRRR investors bridging to refi
- Portfolio owners managing cash flow across doors
Why it’s useful
- Flexible draws align with project timelines
- Typically priced below unsecured options
- Re-use the line without re-applying
- Interest generally accrues on drawn amounts only
Who it’s for
- Landlords and long-term rental owners
- Fix-and-flip operators needing finish funds
- BRRRR investors bridging to refi
- Portfolio owners managing cash flow across doors
Why it’s useful
- Flexible draws align with project timelines
- Typically priced below unsecured options
- Re-use the line without re-applying
- Interest generally accrues on drawn amounts only
Compared to cash-out refi
ILOCs keep flexibility by letting you draw and repay as needed instead of taking a lump sum and resetting your first mortgage.
Why Get Your Investment Property Line of Credit with CUTX?
Lock in low ILOC rates today & borrow funds to cover improvement projects or to make new investments.
- Fast close: 7–10 days
- Same-day funding possible
- No minimum draw
- Easy use of funds via debit card
ILOC questions?
We can help.
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and Saturday 10AM - 2PM CST
Talk to an ILOC Specialist
972-301-1989
Get a personalized ILOC consultation
Eligible Properties & Basic Requirements
Baseline property types, lien position, and credit guidelines investors ask about first.
Properties
- Non-owner-occupied 1–4 unit residential
- Condos/Townhomes:
- Geography: DFW & East Texas counties (see below)
- Title vesting: Personal or LLC
- Non-owner-occupied 1–4 unit residential
- Condos/Townhomes:
- Geography: DFW & East Texas counties (see below)
- Title vesting: Personal or LLC
Use Cases for Investors
Common ways investors deploy an ILOC to move faster and keep costs down.
- Renovations & make-ready before listing or re-tenanting
- Bridge to acquisition (down payments, option money)
- Finish a flip (materials, contractors, carrying costs)
- Portfolio moves (retire higher-APR debt, add doors)
- Renovations & make-ready before listing or re-tenanting
- Bridge to acquisition (down payments, option money)
- Finish a flip (materials, contractors, carrying costs)
- Portfolio moves (retire higher-APR debt, add doors)
How It Works
- Apply: Provide borrower and property details (and entity docs if applicable).
- Valuation & title: Drive-by or interior appraisal; title/insurance review.
- Close & access: Draw funds via wire/ACH/checks .
- Draw & repay: Use funds during the draw period; amortize in repayment.
Turn times: Average close 7–10 days; same-day funding after close may be available.
ILOC vs. Other Financing
| Feature | Investment LOC | Cash-Out Refi | Personal Loan | Credit Card |
|---|---|---|---|---|
| Collateral | Subject property (1st lien) | New 1st lien; replaces loan | Unsecured | Unsecured |
| Funding pattern | Draw as needed | Lump sum | Lump sum | Revolving |
| Typical APR tiering | Lower than unsecured | Mortgage-like | Higher | Highest |
| Line re-use | Yes | No | No | Yes |
Improvement Projects
A popular use of HELOC funds is repairing or renovating a house, or adding special features like a swimming pool or landscaping.
Educational Costs
With their low rates, HELOCs can be a more cost-effective way to cover tuition costs than regular college loans.
Debt Consolidation
Get your debt situation under control. You might save a bundle by paying off higher-interest loans with a lower-interest HELOC.
Expert Assistance
Work with loan specialist who can explain the details of a HELOC and help you with the application process.
Easy Account Management
Log in anytime on your laptop or mobile device to transfer funds and manage your HELOC from anywhere.
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General ILOC FAQs
Can I get a HELOC on a rental property?
Yes. CUTX offers qualified borrowers the option to open investment-property HELOCs/ILOCs.
How fast can I close and draw?
Average close 7–10 days; same-day funding after close may be available.
What can I use the funds for?
Fund can be used for any purpose, including renovations/make-ready, acquisitions and down payments, finishing a flip, or consolidating higher-APR business debt.
Do you allow second liens?
No. This product uses first-lien position only.
Why CUTX?
I’ve been a member for almost 30 years, I can’t imagine banking anywhere else. You’re more than another account at CUTX, you’re a member, you’re a family.
Elsa H.
Great services, excellent staff.
Syed W. H.
Friendly and attentive staff. Paydays come early and the fact that they care for the little guys is definitely my favorite thing about this bank. Definitely the go-to-spot if you’re interested in growing your financial reach.
Xavier H.
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*Fixed rate home equity line of credit: The loan offers draw periods of 5 years or 10 years, followed by a repayment period. During the draw period, interest-only payments are required. The loan will be re-amortized at the start of the repayment period. If you make only the required interest payments during the draw period, the principal balance of the loan will not decrease.
Variable rate home equity line of credit: Credit Union of Texas offers a variable Annual Percentage Rate (APR) based on the Prime Rate as published in the Money Rates section of The Wall Street Journal (the “Index”) plus a margin based on creditworthiness and credit limit. As of December 11, 2025, the index value is 6.75%. The floor APR will be 3.00%. An increase in the Index will result in an increase in the periodic rate which, in turn, will result in higher payments. In no event, will the APR increase by more than 18% or the maximum rate allowed by applicable law. This is a limited time offer and is subject to change at any time without notice.
The minimum advance during the draw period is $4,000. Property insurance is required, including flood insurance where applicable. Texas homestead properties are limited to 80% combined loan to fair market value for home equity financing. All loans are subject to credit approval and Credit Union of Texas lending policies. Other restrictions may apply. In Texas, there is a 12-day cooling off period on all HELOCs. There is also a three-day right of rescission after closing before the funds may be disbursed. Actual time of funding closing may differ depending on appraisal, title and other underwriting requirements. The account is subject to application, credit qualification, and income verification; additional evaluation and verification criteria may apply. CUTX home loan programs are only available in Texas. Borrower will be responsible for certain closing costs, as required, which may include, but not limited to, appraisal and title policy fees. Other restrictions, terms and conditions may apply. NMLS #576560 Credit Union of Texas provides mortgage loans through its affiliate Texas Mortgage Lending, LLC, NMLS #1641703 . Membership required.