Investment Properties HELOCs

3 Replies

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?

Thank you,

Arthur Voskanyan

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.

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