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- 100% online application—no in-person appraisal needed
- Pre-qualify in minutes; funding in as few as 5 days
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Summer presents a prime time for real estate ventures, from purchasing vacation homes to renovating existing properties for seasonal rentals. For many homeowners, accessing funds through a Home Equity Line of Credit (HELOC) can be a strategic way to seize these opportunities. This guide breaks down how a HELOC works, how it can be used for summer real estate ventures, and what you need to consider before leveraging one.
What Is a HELOC?
A Home Equity Line of Credit (HELOC) is a revolving line of credit secured by the equity in your home. Unlike a traditional loan, a HELOC allows you to borrow as needed, up to a set limit, and repay over time. You can draw from it repeatedly, similar to a credit card, during the draw period (usually 5–10 years), followed by a repayment period.
Key Benefits of a HELOC:
- Lower interest rates compared to personal loans or credit cards
- Flexible borrowing—borrow only what you need
- Interest-only payments during the draw period in many cases
Looking to unlock your home’s equity? Learn more about how a HELOC works.
Using a HELOC for Summer Real Estate Opportunities
1. Purchasing a Vacation Rental Property
Summer is peak season for short-term rentals. Using a HELOC as part of your down payment or to cover initial setup costs—like furnishing, decorating, or marketing—can make entering the vacation rental market easier and faster.
Example Use Cases:
- Down payment for a beachside property
- Renovations to make a cabin Airbnb-ready
- Upgrading amenities to attract high-paying summer renters
2. Renovating for Resale (Fix-and-Flip)
If you’re eyeing a summer fix-and-flip opportunity, a HELOC can fund renovations that boost resale value. Summer weather allows for faster project completion, making it a prime season for remodeling.
HELOC-Friendly Upgrades:
- Kitchen and bathroom remodels
- Landscaping and curb appeal enhancements
- New roofing, siding, or exterior painting
Need tips on which renovations offer the best ROI? Check out our article on home upgrades that add value.
3. Adding a Summer Rental Unit
Adding an accessory dwelling unit (ADU), like a guest house or garage apartment, is a smart investment in areas with high summer tourism. A HELOC can help cover permitting, construction, and furnishing costs.
Summer Advantage: Faster permitting and construction timelines due to good weather and contractor availability.
Considerations Before Using a HELOC
1. Risk of Variable Rates
HELOCs typically have variable interest rates, which can rise over time. Make sure your summer investment has the potential to cover higher future payments.
2. Impact on Home Equity
Using a HELOC reduces your home’s available equity, which could affect your long-term financial plans or refinancing options.
3. Rental Market Fluctuations
While summer brings high demand, ensure the rental market in your area has consistent year-round appeal, or prepare for seasonal vacancy.
4. Tax Implications
Interest on a HELOC may only be tax-deductible if used to buy, build, or substantially improve your primary residence. Consult with a tax advisor before proceeding.
Ready to Leverage Your Home Equity?
Speak with a mortgage expert today about how a HELOC can fund your summer real estate goals.
Contact us now or use our HELOC calculator to estimate your borrowing potential.
Frequently Asked Questions (FAQs)
Can I use a HELOC to buy an investment property?
Yes, you can use HELOC funds for any purpose, including buying an investment property. However, make sure the cash flow from the property justifies the additional debt.
Is a HELOC better than a home equity loan for summer projects?
A HELOC offers more flexibility for ongoing or unpredictable expenses, making it ideal for renovations and multi-stage projects. A home equity loan, with its fixed payments, may suit single large expenses.
What credit score is needed to get a HELOC?
Lenders typically look for a credit score of 620 or higher, but a score above 700 will help you secure better rates and terms.
Read Next
- HELOC Requirements for Real Estate Investors in 2025: Updated Guide
- Can You Really Get a HELOC on a Rental Property? What the Lenders Say
Final Thoughts
Using a HELOC during the summer can be a powerful way to jump on real estate opportunities—whether you’re expanding your investment portfolio, flipping homes, or enhancing your current property. Just be sure to weigh the risks and understand the repayment terms before diving in. With the right strategy, your home equity could be your most valuable summer asset.
Have more questions? Schedule a consultation with our home financing experts today.
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
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.
