We recently applied for our firs HELOC on our rental property which has experienced significant appreciation.
We both have decent paying W-2 employment jobs plus the rental income (45200 or so annually) the 2 companies we applied at have had a cap of only taking/accounting for 75% of the rental income and applying it to our Debt to income ratio- leaving me short of what I was expecting to be eligible for in the line of credit. The benefit to this lender happens to be the willingness to go up to 75% LTV on the rental.
Has anyone come across a lender with better options with respect to considering rental income for the HELOC income portion?- for us I am not necessarily looking for the better LTV but really the cap on the debt to income due to their guidelines.
@Nick Bennett it is challenging to find a lender that will do HELOCs on investment property. Have you tried PenFed?
@Kerry Baird I actually found a great company in RI for this that got me exactly what I needed and helping me fund future deals based on landlord experience and less on my own debt to income ratio.
Time to connect with investors!
75% of rental income is standard. I haven't found any lender in MN that was willing to negotiate that portion of the criteria
Are you seeing the 75% of rental income because less than 2 years of W2 proof for the rentals? We put our rental under contract in February 2020 and looking to secure a HELOC now assuming the rental income from the rental (or at least 75% of) will be considered. Anyone insight?