How are HELOC’s on investment properties? Are the LTV the same up to 80%? Is it lower on Investment Properties? Does it really depend on your Credit, other debt, DTI, are mortgage companies stricter on giving out loans on investment properties rather than primary residence? Or is it just as common?
HELOCs on investment properties are harder to find since most banks won't do them. The ones that do typically offer a lower LTV (60-65%) than you'll find on owner-occupied properties. Of course, as with any loan, the LTV can be lowered (or the loan completely denied) for lower credit scores, high DTI, etc.
Wells Fargo does them at 65% LTV if I remember correctly when I looked a year ago. First National does at 75% LTV. Both had higher rates. Try smaller banks. Also it may be worth paying for the full walk thru appraisal vs the free drive by provided by the bank.
@Arthur Voskanyan as mentioned above HELOC's are nearly impossible to find on investment properties. You can go the route of a cash out refinance if you have enough equity built up in the property.
Here are the LTV's that you would get with conventional cashing out:
- On an investment property; A SFR if you have #1-10 mortgaged properties, you can pull out up to 75% of the equity and on 2-4 units is up to 70% equity.
- On an investment property; If you have #7-10 mortgaged properties, including subject you are required to have a credit score of 720.
We do take into consideration, your income, debts, DTI's, credit score, just like Primary residence financing.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing