Home equity loan question

7 Replies

@Bridget Diaz , afaik, plenty of lenders will offer a LOC against the (borrowable) equity you have in an investment property. Even your current lender probably has a division that deals in commercial / asset-based loans. [Time to find a different Loan Officer?]

Q: What's your borrowable equity? ie. What specific % of its value will a lender lend? 

(A: Usually significantly less of a % than if you were the owner-occupier).

If you'd like to buy it with a deposit and a mortgage anyway, what's the issue?

ie. I don't see your second question as being related to your first question. 

ie. Why would a lender give you a (later) mortgage, but not a (later) LOC? Welcome to BP...

I've recently talked to about a dozen local banks and credit unions, and it was difficult to find one that offered a LOC on an investment property. I think there were 1 or 2 who offered a loan (I can't remember because I wanted a LOC). I'm working right now with Huntington Bank to get a LOC, and they were the only ones who did. If they are in your area I'd check with them.

Originally posted by @Bridget Diaz :

Michele, that's exactly what he meant, but neglected to say it.

 If by saying "you can take an equity line out on an investment property but not a home equity you don't live in", Michele is just saying: "it's not called a HELOC, but it's called an ELOC", then why didn't your Loan Officer know enough to talk to you in that same language? Just sayin'...