How do you pull out equity on your home after its appreciated?

69 Replies

Hi all, I have a SFR valued at around 215k. The original loan was for 170k and I currently owe 140k. What’s the best strategy to pull out the equity to buy another property based off the new value? Traditional banks I’ve spoken with will only give me a cash out refi based off the original loan amount and money I owe now.
@Brian Garrett Thanks for the reply. Is it possible to get a heloc based off the appreciated value though? I tried for a heloc and they based it off the original loan amount/amount I owe. Should I order a new appraisal myself and bring it with?

I have done it. It can can definitely be done. Just talk to other banks. I have gotten both HELOC and cash out refi. The bank will order their appraisal as part of the loan process.

@Greg Davis - Is it your primary residence or a rental property? If its a primary residence both HELOC and/or cashout refi are possible with any local credit union. I dont know about Atlanta or GA MSA but there are some banks here in WA these days that go upto 95 or even 100% (according to the flyers I have seen) with a full appraisal and other factors like assets, your financial stmt and other criteria but upto 90% LTV is pretty std I think in most cases for a HELOC on a primary residence and 80%LTV on a cashout on primary residence. If its a rental your only option would be cash out refi @75%LTV as HELOCs on an inv prop are virtually non existent anymore after 2008/2009 market crash but you never know. I do have a HELOC that I got in 2015 through a CU for a rental propety we own in SF Bay area so its still possible so you never know. I remember I had a list of all CUs in CA and I called every single one and was lucky to get one that offered at 80% LTV cashout on a rental will give you around 18k after closing costs.

You can do HELOCs on rental properties through Pentagon Federal CU ("PenFed"). If you own more than 3 rentals and DON'T own your primary residence, you're out of luck, but otherwise... Competitive rates, no appraisal necessary (unless you want to pay for one, in the hopes of getting a better number on your investment prop). Not a bad option... They're also good for mortgages on investment properties (currently 4.5%, 30 yr am, 10 yr balloon)...

@Dave Lawrence - I feel like I had talked to penfed back in 2015 and from what remember they dont do HELOCs on a rental condo which is what I have in SF so thats why I couldnt go with them but I could be wrong Thanks for the reminder on penfed. I can check them out again for other SFRs that I own now
Originally posted by @Vik P. :
@Dave Lawrence - I feel like I had talked to penfed back in 2015 and from what remember they dont do HELOCs on a rental condo which is what I have in SF so thats why I couldnt go with them but I could be wrong

Thanks for the reminder on penfed. I can check them out again for other SFRs that I own now

Just got one on mine.

Originally posted by @Aaron Hunt :
Originally posted by @Vik P.:
@Dave Lawrence - I feel like I had talked to penfed back in 2015 and from what remember they dont do HELOCs on a rental condo which is what I have in SF so thats why I couldnt go with them but I could be wrong

Thanks for the reminder on penfed. I can check them out again for other SFRs that I own now

Just got one on mine.

Cool. I was checking their website yesterday and you are right it didnt exclude condos for non owner occupied HELOCs. Is it 10 yr draw IO only and 15 yr repay for yours?

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here