Best bank/credit union to work with in Minnesota

Starting Out
6yFollow

Best bank/credit union to work with in Minnesota

Ilya Plugovoy
Member since 2020 · 10 posts · 7 votes

Hey all. I am new to BP and MN. Moved here from CA 3 years ago for work and have been looking to get into real estate investing. I've been doing lots of research and was thinking that the best way would be to get a HELOC for the downpayment and then go from there. From my research so far, I found I could get a HELOC from Affinity Plus at 90% ltv with a current rate of 2.5%. That is the lowest I have seen. But my question is if this is a good credit union to work with and has anyone worked with them? Or are there other banks/credit unions that y'all had enjoyed working with.

2Reply
65 views

Most Popular Reply

Account Closed
Rental Property Investor · MN · Member since 2015 · 186 posts · 149 votes
6y

I work with Merchants Bank (Rosemount or Apple Valley). HELOC on Investment Property:

>=700 (credit score), <=80% LTV the rate would be Prime - .25%
>=700 (credit score), 80.1% - 90% LTV the rate would be Prime + .50%
>=700 (credit score), >90%, the rate would be Prime + 1.75%

30 years; the first 10 years is the draw period, the remaining 20 years is the repayment.

Annual fee $25.

2Reply
See this reply in the discussion

12 Replies

Jump to latestLatest
  • Adam TafelBusiness Member
    Real Estate Agent · St. Paul, MN · Member since 2017 · 592 posts · 402 votes
    6y

    Those terms sound pretty ideal- I have a friend who works at the Minneapolis University Ave office, I can reach out to him to get his opinion on the terms. What part of MN are you in? 

    Upside Property Sales 4.9108 Reviews
    WebsiteView Page
    0Reply
  • Ilya Plugovoy
    OP
    Member since 2020 · 10 posts · 7 votes
    6y

    I’m in Burnsville and work in Farmington. 

    0Reply
  • Kurt Pauley
    Realtor · Minneapolis, MN · Member since 2016 · 245 posts · 107 votes
    6y

    @Ilya Plugovoy

    Welcome to BP! Hope you're doing well in these crazy times. 

    Those terms are looking pretty good. I know Wings Financial was higher than that when I checked. Compare the fees of course and always good to start with the lender that holds your mortgage.

    Good luck out there. 

    0Reply
  • Jessica Grewe
    Investor · Rochester, MN · Member since 2016 · 80 posts · 37 votes
    6y

    That is phenomenal terms! I'm in Rochester MN and have a HELOC for 15 year 80% ltv at current rate 3.5%. You are hired LOL. What bank can you find with great terms for a 30 year mortgage on an investment property?

    1Reply
  • Nick Stageberg
    Rental Property Investor · Rochester, MN · Member since 2016 · 45 posts · 25 votes
    6y

    That sounds pretty good to me! 

    0Reply
  • Justin V.
    Rental Property Investor · Minneapolis, MN · Member since 2016 · 214 posts · 132 votes
    6y

    @Ilya Plugovoy

    Sounds stellar. How much is origination?

    1Reply
  • Ilya Plugovoy
    OP
    Member since 2020 · 10 posts · 7 votes
    6y

    @Justin V.

    I haven’t sat down with them just yet but plan to do so shortly to get some more details. 

    1Reply
  • Clem Foltz
    Minneapolis, MN · Member since 2016 · 9 posts · 15 votes
    6y

    That does seem really good for a non-owner occupied. I know for a owner occupied we found Hiway Federal Credit Union will go 100% LTV... including at least duplexes... I would say use that knowledge at your own risk. The interest rates are a little bit higher.

    1Reply
  • Ilya Plugovoy
    OP
    Member since 2020 · 10 posts · 7 votes
    6y

    @Clem Foltz

    This will be from my private residence. 

    0Reply
  • Account Closed
    Rental Property Investor · MN · Member since 2015 · 186 posts · 149 votes
    6y

    I work with Merchants Bank (Rosemount or Apple Valley). HELOC on Investment Property:

    >=700 (credit score), <=80% LTV the rate would be Prime - .25%
    >=700 (credit score), 80.1% - 90% LTV the rate would be Prime + .50%
    >=700 (credit score), >90%, the rate would be Prime + 1.75%

    30 years; the first 10 years is the draw period, the remaining 20 years is the repayment.

    Annual fee $25.

    2Reply
  • Keith Linne
    Investor · Minnetonka, MN · Member since 2013 · 70 posts · 100 votes
    6y

    @Account Closed I'm fairly new to HELOC style debt. After the 10 year draw period, does the rate continue to adjust along with Prime, or is the rate at the beginning of year 11 locked for the 20 year repayment period?

    0Reply
  • Account Closed
    Rental Property Investor · MN · Member since 2015 · 186 posts · 149 votes
    6y
    Originally posted by @Keith Linne:

    After the 10 year draw period, does the rate continue to adjust along with Prime, or is the rate at the beginning of year 11 locked for the 20 year repayment period?

    The rate can adjust any time, even after 1 month after you open the HELOC.

    1Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free