Investor · Charleston, WV · Member since 2013 · 20 posts · 8 votes
I need some guidance! I have a few rental properties and am ready to keep growing my portfolio. I'd like to take out a HELOC on one of my investment properties in order to make another investment. The mortgage broker I've dealt with in the past says she's unable to do this. Is this possible? If so, where or who do I contact to start this process? Thanks.
@Nathan K.-many lenders dont offer helocs ....many lenders also dont offer helocs on rental properties ...some ideas : 1) contact the rental property 1st mtg servicer for options 2) contact banks / credit unions near the prop for options ? 3) contact banks / credit unions you have relationships with ....what is the rental prop value and what is the present 1st mtg balance ? ( you might not have ample equity for a heloc )
@Nathan You will have to go through THIS LIST and search for a bank/lender that does this for WV. I know it's cumbersome, however this is the most comprehensive list I've seen. Investment property HELOCS are difficult to come by. You also have the option of a Home Equity Loan for Investment Properties. These are easier to fund, however you just don't have the draw feature. Good luck.
@Nathan K. You have to find a regional bank that services their own loans. In my case, i had refinanced from one bank to this regional bank.
Also, it's technically considered a Business Line of Credit, using the house as collateral, rather than a HELOC, and you have to roll it over every year-it's not an "x" year draw then repayment period.
@Nathan K. HELOC is a great option to purchase more properties if you have enough equity to do so. I've worked with a couple out-of-state investors who have went this route and got a HELOC (on their Primary Residence). Their best success was working with their local credit unions to do so. I would start with them.