Real Estate Broker · Atlanta, GA · Member since 2015 · 32 posts · 10 votes
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.
Do not order an appraisal because most lenders have their own appraisal companies and you will be paying for two appraisals. Is the property in Atlanta?
Real Estate Broker · Atlanta, GA · Member since 2015 · 32 posts · 10 votes
8y
@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?
Do not order an appraisal because most lenders have their own appraisal companies and you will be paying for two appraisals. Is the property in Atlanta?
Investor · Sherman Oaks, CA · Member since 2016 · 10 posts · 3 votes
8y
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.
Investor · Camas, WA · Member since 2015 · 82 posts · 56 votes
8y
@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.
Investor · SANTA BARBARA, CA · Member since 2017 · 22 posts · 27 votes
8y
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)...
Investor · Camas, WA · Member since 2015 · 82 posts · 56 votes
8y
@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
@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
Rental Property Investor · Tampa, FL · Member since 2014 · 55 posts · 12 votes
8y
@Sandor Bogdan. If cashout refi AND Heloc are options, what rules of thumb or strategies should be considered? I don’t want to divert from the original question, but it seems like a natural question to ask.
@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?