Great Lenders for Helocs

[Scott Goulet]

Hello BP! hope everyone is having  a great start to 2022! 

my goal for 2022 is to purchase a 16 unit apartment complex somewhere in Missouri, possibly Kansas City or Saint Joseph. A 16 unit apartment complex will probably run between $800K and $1million. 

I currently have about $80K saved up and can save about $4k per month, so if I just straight save, I may be able to still grab one by the end of the year. 

However, another strategy I have heard of is using a Heloc to purchase investment properties. 

My primary residence is worth about $350K and my mortgage balance is $250K, using the standard formula/LTV i have heard around the bp community that lenders will typically do 70/30's or 80/20's. So I should hypothetically be able to get $70K-$80K as a heloc, correct?

I have called any lenders yet, however, on their online calculators, I have seen like $20k as the highest heloc I can get, so I am not sure if I am thinking about this wrong? 

I have a 813 credit score and my income between my wife and I is a little over $200k, so I wouldn't think we dont qualify for more? 

Please let me know your thoughts on my Heloc strategy 

im based in Port Saint Lucie Florida! nice to meet you :) 

[Scott Goulet]

Also, has anyone used a company called "lower" https://hi.lower.com/ is their website? 

Looks like they have pretty attractive terms. 

[Jack Luzecky]

@Scott Goulet I believe First Community Credit Union has HELOC products up to 95% LTV for primary residences. I think you should be able to find local credit unions who are willing to surpass the 70/30-80/20 LTV on a primary residence. If you ever look in St. Louis for a large multi-unit building I'd be happy to discuss any potential properties.

[Jack Luzecky]

Correction: First Community = 90% LTV

[Milton Chamberlain]

Hi Scott,

I just recently open up a HELOC with Bank of the West.

My primary residence appraised at 380. Owe 300. We were able to get $60,000 out of the 80,000 in equity. 

My wife handled the whole process, but it seemed like she didn’t have many issues. If my memory serves me, I don’t think they even made us pay for an appraisal. I believe the rate is a bit higher than a 30 year mortgage…high 4’s low 5’s.

we just have the $60,000 sitting in an account. It Doesn’t start running interest until we use it, is my understanding.

we plan to use it for a rehab. Just waiting for the tenants lease to expire.

[Scott Goulet]

Originally posted by @Jack Luzecky:

@Scott Goulet I believe First Community Credit Union has HELOC products up to 95% LTV for primary residences. I think you should be able to find local credit unions who are willing to surpass the 70/30-80/20 LTV on a primary residence. If you ever look in St. Louis for a large multi-unit building I'd be happy to discuss any potential properties.

Jack, thanks for the info, looking forward to connecting! 

[Scott Goulet]

Originally posted by @Milton Chamberlain:

Hi Scott,

I just recently open up a HELOC with Bank of the West.

My primary residence appraised at 380. Owe 300. We were able to get $60,000 out of the 80,000 in equity. 

My wife handled the whole process, but it seemed like she didn’t have many issues. If my memory serves me, I don’t think they even made us pay for an appraisal. I believe the rate is a bit higher than a 30 year mortgage…high 4’s low 5’s.

we just have the $60,000 sitting in an account. It Doesn’t start running interest until we use it, is my understanding.

we plan to use it for a rehab. Just waiting for the tenants lease to expire.

Milton, that is awesome news! sounds like a great program to me, i have recently looked into BofA, Lower.com, Pennfed CU, and CMG financial. These are all good options but BOTW sounds great as well! 

thanks for the information! Good luck with your investments. 

[Alex Olson]

Originally posted by @Scott Goulet:

Originally posted by @Milton Chamberlain:

Hi Scott,

I just recently open up a HELOC with Bank of the West.

My primary residence appraised at 380. Owe 300. We were able to get $60,000 out of the 80,000 in equity. 

My wife handled the whole process, but it seemed like she didn’t have many issues. If my memory serves me, I don’t think they even made us pay for an appraisal. I believe the rate is a bit higher than a 30 year mortgage…high 4’s low 5’s.

we just have the $60,000 sitting in an account. It Doesn’t start running interest until we use it, is my understanding.

we plan to use it for a rehab. Just waiting for the tenants lease to expire.

Milton, that is awesome news! sounds like a great program to me, i have recently looked into BofA, Lower.com, Pennfed CU, and CMG financial. These are all good options but BOTW sounds great as well! 

thanks for the information! Good luck with your investments. 

Hi Scott - could look at community America credit union. They will lend 100%. Let me know how I can help. 

[Jesse Richardson]

@Scott Goulet. we use patricia Oconnor at springeq.com.

http://www.wholesale.springeq.com/

call her. they are licensed in 40 states

Jesse