LTV limits for Non-QM HELOCs are generally more conservative than conventional HELOC programs — reflecting the additional flexibility the product provides in other areas like income documentation.

Typical Non-QM HELOC CLTV Limits

• Primary residence: Up to 80%–85% CLTV depending on program and FICO
• Second home: Up to 75%–80% CLTV
• Investment property: Up to 70%–75% CLTV

How CLTV Is Calculated

CLTV = (First Mortgage Balance + HELOC Amount) ÷ Appraised Property Value. The same formula as a conventional HELOC — but with a lower cap in most Non-QM programs.

FICO and LTV Interaction

Higher FICO scores typically unlock higher LTV within each tier. A borrower with a 720 FICO may access 80% CLTV on a primary residence, while a borrower at 660 may be capped at 75%. The specific matrix varies by lender and program.

Why Non-QM LTV Is Lower

Non-QM lenders take on more underwriting risk by accepting alternative income documentation — they compensate by requiring more equity in the property. Lower LTV = more equity cushion = lower lender risk. This is a standard tradeoff across the Non-QM space.