Investor · Maui, HI · Member since 2014 · 48 posts · 10 votes
Any recommendations on reputable lenders that does home equity loans or HELOC on a non-owner occupied SFR?
LTV is currently at 63%. I would like to find a home equity loan or HELOC as opposed to a refi because rate is currently 3.5% and cash flows well. Still early in my search but I know PenFed will loan up to 80% LTV on non-owner occupied.
Would like to use money to buy raw land or another investment property and appreciate any feedback. Thanks
Most banks will do HELOC's. Actually they're advertising it more than they used to. Outside of American Savings Bank I see a huge poster advertising come in we do HELOC's, inquire within.
I'm thinking of doing something similar for my property in CA. One option that I looked at but haven't pursued yet is Bank of the West. They have a non-owner occupied HELOC option. Did you inquire with PenFed yet?
@Manly Souza the last I checked with ASB they did it on owner-occupied homes. I'll check again.
@Duc Ong right on, let me know if you find out anything more on bank of the west, I'll check them too. I did follow up at penfed, they will cover all closing costs except for the appraisal (if they actually run one on a property.) They will do up to 80%LTV max on non-owner. After I ran numbers, Penfed's home equity loan would work better than their HELOC for my situation.
Was interested when I read about you buying raw land. If you read my bio you will see that has been my niche since the early 80s. May I ask do you have land investments on the islands or mainland? I am always looking for wholesale investments in land.
@Duc Ong I Spoke with a PenFed loan officer and asked them to run calculations for both home equity loan and heloc given their specific rates, terms, fees, etc. Basically, they have no costs unless they run an actual appraisal of the property. No prepayment penalty as long as you keep account open for 2 years. The monthly payment on the home equity loan was cheaper at $500/ month fixed for 12 years vs. 400/ month variable.