How to find the right HELOC deal...

How to find the right HELOC deal...

Member since 2019 · 41 posts · 11 votes

I'm in the middle of what seems like an endless search for the right HELOC deal.

My situation is that I'm looking to get a HELOC against my primary to invest in more rental properties (I currently have 5). My primary is appraising at $300,000 and I owe $215,000. I'm looking to have a line of credit of at least $50,000 (hopefully more).

I've spent the last month talking with 6 different lenders and every time we get down the road, there's small print that pops up (I need to pull out X amount at closing, no cap on the rate increases each year, I have to move all my money into their bank and hold X amount in there the whole time, etc.). 

Any suggestions on what I should do or where I should go? 

1Reply
4 views

2 Replies

Jump to latestLatest
  • Rental Property Investor · Springfield, MO · Member since 2019 · 462 posts · 365 votes
    6y

    Talk to more banks.... try local banks, try larger banks... Our HELOC is through US Bank and doesn't have any of those 'small print' issues.

  • Rental Property Investor · Clarksville, TN · Member since 2016 · 1k+ posts · 1k+ votes
    6y

    @Joe Delgrosso

    We went with Elements Financial Credit Union and have loved it. Also consider if cash out wouldn't be more appropriate. If you are going to invest and keep investing, the flexibility of a HELOC might be less advantageous to just getting a lump sum and not having to worry about the bank freezing or calling the line.

Join the conversationCreate a free account to reply, vote on answers and follow this thread.