I own a home in California that has about 100,000 in equity. I'm rehabbing a property in Baltimore, Maryland and want to get $75,000 from the California house. I called Bank of America to open a HELOC, and was told you cannot open a HELOC on an investment property. Can someone advise me how to use the equity in the California House to renovate a new property. I am closing on the house on Monday, and am fine with financing the purchase, but I need cash to have an easy renovation experience. Thoughts?
I just opened a HELOC on an investment property in California through PenFed. They go up to 80% LTV on investment properties and it took almost 45 days to get it done.
@Michele Galloway What Bank of America should have told you is that THEY can't do a HELOC on investment properties. There's other lenders that can (i.e. PenFed, Wells Fargo, Union Bank, etc).
Just call around to find a lender will work for you.
Here’s some things to know and questions to ask when you’re calling around: What You Need to Know When Shopping for a HELOC.
You can get a HELOC on an investment property at other banks. Your rate may not be as good as it would be for a primary residence but you can get one. Just make calls to prospective banks and choose the one with the best rate and lowest fees.
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