Homeowners can tap equity through a home equity loan, HELOC, or cash-out refinance to help fund a second home or investment property.
Lenders usually review income, credit history, and market value, then commonly cap borrowing near ~80% of available home equity before approving funds for another purchase.
A home equity loan typically delivers one lump sum with a fixed rate, while a HELOC allows repeated borrowing with adjustable interest.
Cash-out refinancing replaces the current mortgage with a larger one, freeing equity for another property while adding fees, closing costs, and restart considerations.
Before choosing, compare down-payment help, possible lower interest costs, foreclosure risk, tax treatment, and non-equity options such as seller financing or personal loans.