Rental owners in Connecticut who want to tap equity without giving up their first mortgage can ask about a home equity loan or HELOC on investment property. Fewer lenders offer these than offer equity loans on primary homes, and the loan sits second in line, so lenders look closely at combined debt, the lease and your reserves. A licensed loan officer can tell you which lenders in Connecticut are open to it and how the terms compare with a refinance.
Call to talk with a licensed loan officer. Programs vary by borrower, property and investor.
Connecticut foreclosure process: judicial. Connecticut forecloses through court actions in Superior Court, usually by strict foreclosure (title passes to the lender if no one redeems), with foreclosure by sale also available. Short-term loans carry real risk if the exit plan slips, so know how default is handled before you sign.
Where the numbers point in Connecticut
Counties with the most investor HELOCs and second liens (2024):
| County | Investor HELOCs and second liens (2024) |
|---|---|
| the Capitol Planning Region | 77 |
| the South Central Connecticut Planning Region | 53 |
| the Naugatuck Valley Planning Region | 44 |
| the Western Connecticut Planning Region | 36 |
| the Southeastern Connecticut Planning Region | 31 |
| the Greater Bridgeport Planning Region | 25 |
| the Lower Connecticut River Valley Planning Region | 16 |
| the Northwest Hills Planning Region | 4 |
Start your application in a few minutes. A licensed loan officer reviews it and follows up with your options.
- Takes a few minutes
- Reviewed by a licensed loan officer
- No obligation to proceed
Prefer to talk first? Call (888) 865-8230. Applying is not a loan approval or commitment to lend; programs vary by borrower, property and investor. ClearPoint Mortgage Advisors, NMLS #173855. Properties in FL, NY, NJ, PA, CT and VA only.
HELOCs & Home Equity Loans on Rental Property by city in Connecticut
- Ansonia
- Branford Center
- Bridgeport
- Bristol
- Cheshire Village
- Conning Towers Nautilus Park
- Cos Cob
- Danbury
- Derby
- Glastonbury Center
- Hartford
- Jewett City
- Kensington
- Meriden
- Middletown
- Milford
- Milford city
- Naugatuck
- New Britain
- New Haven
- New London
- Norwalk
- Norwich
- Oakville
- Old Greenwich
- Pawcatuck
- Riverside
- Rockville
- Shelton
- Sherwood Manor
- Simsbury Center
- Southwood Acres
- Stafford Springs
- Stamford
- Storrs
- Terryville
- Thompsonville
- Torrington
- Wallingford Center
- Waterbury
- West Haven
- Willimantic
- Winsted
Common questions
Can I get a HELOC on a rental property in Connecticut?
You may be eligible, but fewer lenders offer HELOCs on investment property than on primary homes, and those that do often set tighter terms. Expect a review of your credit, the rent, the first mortgage balance and the property's value. A loan officer can tell you which lenders are open to rental equity lines and what they look for.
What is combined loan-to-value on a rental?
It compares the total of every loan on the property, your first mortgage plus the equity loan or line, with the property's appraised value. Lenders set a ceiling on that combined figure so some equity stays untouched as a cushion. The ceiling varies by lender and is often stricter on rentals than on owner-occupied homes.
What does a lender in Connecticut need to see for a rental equity loan?
Usually a credit report, your first mortgage statement, the lease or proof of rent, tax returns showing the property's income, insurance information and an appraisal. Some lenders also ask about other properties you own. Confirm the lender's and loan officer's licenses on NMLS Consumer Access, and note that every loan is subject to credit approval.
Other investor loans in Connecticut
DSCR loansDSCR requirementsDSCR down paymentAirbnb / STR loansHard money lendersHard money for a primary homeFix and flip loansInvestor bridge loansPortfolio lendersBlanket mortgagesInvestment property loansInvestor cash-out refiSecond home loansInterest-only investor loansPrivate money lenders
Related guides
- DSCR Loan vs Conventional Investment Property Loan
- How to Compare DSCR Lenders and Loan Offers
- LLC Mortgage Basics: Financing a Rental in an LLC
HELOCs & Home Equity Loans on Rental Property overview · Connecticut investor loan overview
- 2024 HMDA data