A home equity line of credit (HELOC) lets you borrow against the equity in a property you own, up to a limit, and it works like a credit card rather than a lump-sum loan. You draw what you need, pay interest only on the balance you use, then repay and reborrow during the draw period. Rates are usually variable, and the line is secured by the property, so the home is collateral.
Investors often tap a HELOC on a primary residence or a paid-down rental to fund a down payment, a renovation, or an all-cash offer, then repay it after refinancing the new property. Used this way it is flexible and fast, but the variable rate and the fact that your home secures it mean a rate spike or a stalled project raises real risk. Interest deductibility depends on how the funds are used and is subject to limits, so treat the tax side as general education and confirm it with a professional.
This is general educational information, not legal or tax advice. Rules vary by state and locality and change over time — check your local law and confirm specifics with a qualified professional.