Non-QM HELOC rates are higher than conventional HELOC rates — reflecting the additional risk and flexibility the product provides. Here is a realistic comparison.

Conventional HELOC Rates

Standard HELOCs are typically priced at Prime Rate +/- a margin. For well-qualified borrowers, this can result in rates close to or even below Prime. As of mid-2026, conventional HELOC rates for strong borrowers range from approximately 7.5%–9.5% depending on the lender and CLTV.

Non-QM HELOC Rates

Non-QM HELOC rates carry a premium over conventional rates — typically 1%–3% higher depending on the income documentation type, LTV, credit score, and occupancy. A Non-QM HELOC might carry a rate of 9%–12% for a comparable transaction.

Why the Premium Exists

Non-QM lenders accept more underwriting risk — alternative income documentation, potentially lower credit scores, broader property types, and investment property collateral. The higher rate compensates for this additional risk exposure. The premium is the cost of access for borrowers who cannot qualify for conventional programs.

Is the Premium Worth It?

For borrowers who generate strong cash flow but show lower income on tax returns — and for whom the alternative is not accessing equity at all — the Non-QM HELOC rate premium is typically well worth it. The access to capital often far outweighs the cost difference.