EveryCalc

Finance category

Mortgage, loan, investing, tax, and money calculators.

Browse finance

Rehab Loan vs HELOC Calculator

Decide how to fund a renovation: take a rehab loan against the project property, or draw on a HELOC against another property you already own. Compare net cost over the planned hold.

Project

$

Rehab loan

%
$

HELOC

%
$

Rehab loan

$715/mo

net cost over hold: $12,815

HELOC

$620/mo

net cost over hold: $11,906

Difference

$909

HELOC saves

When to use each

Rehab loan: required for new acquisitions where the property doesn't yet have equity to support a HELOC. Often the only choice for non-owner-occupied flips and BRRRR projects.

HELOC: best when you already have equity in another property. Usually lower rate and much lower fees, but slower to set up and adds a lien against the source property. Plan ahead so the HELOC is in place before you need the funds.

How to Use

  1. Enter the rehab amount and how many months until you'll refinance or sell.
  2. Enter the rehab loan rate, term, and total fees.
  3. Enter the HELOC rate and setup fees.
  4. Pick whichever yields lower total cost — assuming you have access to both options.

Frequently Asked Questions

When do I need a rehab loan instead of a HELOC?

When the project property doesn't yet have equity (new acquisition with low LTV) or when you don't own another property to tap. HELOCs are usually cheaper but require established equity somewhere.

Why is a HELOC usually cheaper?

HELOCs have lower rates and much lower fees than rehab loans. Standard HELOC fees are $250–$1,500; rehab loans often have $3,000–$8,000 in points and origination.

What's the speed difference?

Rehab loans close in 2–4 weeks. HELOCs take 30–45 days to set up. If you have a HELOC already established, you can draw immediately. If you need to apply, a rehab loan may be faster.

Can I combine both?

Yes. Some BRRRR investors use a HELOC for the down payment and acquisition cash, then a rehab loan for construction draws. Mix and match to optimize rates and fees.

Related Calculators

More Finance Calculators

Browse all finance

Keep exploring

Next steps in Finance

View finance hub →