Unlock Your Home Equity with Figure
- 100% online application—no in-person appraisal needed
- Pre-qualify in minutes; funding in as few as 5 days
- Borrow up to $400,000 with flexible terms
- Soft credit check—no impact on your score
Investing in real estate near universities can be a lucrative strategy, thanks to consistent rental demand from students, faculty, and staff. One increasingly popular way to finance these investments is through a Home Equity Line of Credit (HELOC). Whether you’re a seasoned investor or just starting, understanding how to leverage a HELOC for property investments can unlock new financial opportunities.
In this article, we’ll cover how HELOCs work, their benefits and risks, and practical steps for using them effectively in university area property investments.
A Home Equity Line of Credit (HELOC) is a revolving credit line secured by the equity in your home. Unlike a traditional loan, a HELOC allows you to borrow only what you need, when you need it—similar to a credit card.
Key Features:
University-adjacent real estate is consistently in demand due to:
Want to understand more about real estate investing basics?
Read our beginner’s guide to real estate investing
Lenders typically allow you to borrow up to 85% of your home’s value minus what you owe on your mortgage. Use this formula:
Home Value x 85% – Mortgage Balance = HELOC Potential
Submit an application through your bank or credit union. Requirements often include:
Look for properties within walking distance of campuses, with features appealing to students:
Remember, a HELOC is not free money. Your repayment plan should include contingencies for:
Need help assessing if a HELOC is right for your situation?
Schedule a free real estate investment consultation
Yes, many investors use HELOCs to cover down payments or renovation costs, although some lenders may have restrictions. Always check underwriting guidelines.
Yes. Even if you haven’t drawn from your HELOC, lenders may factor in the full credit line when calculating your borrowing capacity.
After the draw period, you enter the repayment phase, where you must repay principal and interest—often over 10 to 20 years.
Explore related strategies to expand your real estate portfolio:
Using a HELOC for university area property investments can be a smart, flexible strategy when done correctly. With strong demand, higher rental yields, and proximity-driven value appreciation, university properties offer a compelling investment case. However, as with any financial tool, it’s essential to balance opportunity with risk and make informed, strategic decisions.
Ready to unlock your home’s equity and grow your real estate portfolio?
Contact our investment specialists today
Internal Linking Strategy Notes:
Our advise is based on experience in the mortgage industry and we are dedicated to helping you achieve your goal of owning a home. We may receive compensation from partner banks when you view mortgage rates listed on our website.