HELOCs and Investment property
Real Estate Investor · Hamden County, MA · Member since 2017 · 75 posts · 31 votes
Good Evening;
Has anyone had luck finding a lender willing to underwrite a heloc for non owner occupied investment property (1-4 units)
Any insight, comments, suggestions, recommendations, etc are much appreciated.
edit: I have yet to find a local bank or credit union willing to entertain the idea. Thus I am resorting to my fellow BP members.
Thank you
-Ryan J
HELOC for Investments
Try local community bank or credit union for investment properties. TD and US Bank are my best recommendations.
I've gleaned these lenders from the kind people on BP. I have used PenFed and TD Bank for HELOCs on investment property. Post back if you find another lender who serves you well, and I will add them to my list and pay it forward. These were all sourced pre-CV19, so eat the fish and spit out the bones.
The percentage range varies by lender, but expect to only be approved with a DTI ratio of 47% or less. While qualifying for a HELOC is more dependent on your home equity than your credit score, good or excellent credit makes it easier to qualify. A good average to shoot for is 620 or higher. Plus, the better your credit score, the better your interest rate.
Ridge Lending All in One, first position HELOC
AFCU does 80% LTV on NOO. Utah
Americafirst 80% LTV on noo 65% LTV Utah
Arvest Bank AR, OK, AL, MO
Bank of West (BNP Paribas) 60% LTV ELOCs
BB&T will loan on a rental portfolio
BBVA Compass
Bellwether NH and MA 85% to 100%, draw 10 yrs
Boeing employee credit union
California: Cal Coast Credit Union and Fremont Bank
Citizens Bank -Minnesota, only in-state. Kyle Potswald
Citizens first position HELOC
CMG a financial 70% LTV
East West Bank, up to 60% LTV with "no docs"
Figure 80% on a rental, not in LLC
FirstBank CO a and AZ 75% LTV
First Florida Credit Union https://firstflorida.cumortgagecenter.com
First Commonwealth
First Midwest, up to 90% Chicago area
First Republic - California
Fulton Bank
GFA Federal Credit Union 10 yr draw, 10 yr repay, MA
Granite State CU, NH 90-100%
Great Lakes Credit Union
Veritex, Texas HELOC
Hanscom FCU, Florida
HSBC 70%, for premier clients only
Horizon, Kalamazoo Michigan
Huntington 75% LTV 5 yr IO product available
Hurst Lending and Insurance Investment property HELOC in Texas. No seasoning.
Key Bank, FLorida flexible lender, HELOCs on second
homes and rental properties. 90% LTV on primary.
Mountain America Credit Union in Utah, Idaho, Montana, Nevada, Arizona, New Mexico. 85% LTV, promo rate of 1.99%. Can refinance an existing mortgage on investment property to a shorter term "Mini Mortgage."
Merchants Bank MN See Pavel Ushakov
PenFed - max 3 other properties, 89% LTV
Quorum Federal Credit Union 80% equity, owned by LLC is OK. 5 year interest only payments. New York State. Tiffany Mazzoccoli. 2021
Regions- yes HELOC but no LOC
SCCU Florida 70% LTV, 6.25% interest only, not LLC
Signature Federal Credit Union 75% LTV
Sound CU "non-owner occupied HELOC, capped at $150K and interest rates are prime + 2%, 3% or 4%, based on credit, not to exceed 70% ltv."
S&T Pennsylvania
TCF Bank
TD Bank 75% line with FICO about 740
TIAA Direct was EverBank
Trustco
Union Bank, specializes in noo HELOC. KCMO, NE
Union Bank, MUFG.
Upstate Bank in Rochester NY, LOC up to 80%
US Bank
Vectra Bank - Colo
Workers Credit Union, MA 80-100%
WSFS...up to 70% on rental
Zions Bank, Utah
Wisdom from Ann Bellamy:
I also never keep much cash in a bank account in the same bank where I have any mortgage. For example, I have a mortgage and operating account at Bank X for one of my businesses. I pull out most of the surplus cash from the operating account and put it in an account owned by the same company but in Bank Y.
@Ryan Jopson Penfed has been a popular place to go in the past for non-owner occupied HELOCs. I've never used them but have heard positive things.
Best of luck!
TD Bank is another, as is US Bank.
HELOC for Investments
Try local community bank or credit union for investment properties. TD and US Bank are my best recommendations.
I've gleaned these lenders from the kind people on BP. I have used PenFed and TD Bank for HELOCs on investment property. Post back if you find another lender who serves you well, and I will add them to my list and pay it forward. These were all sourced pre-CV19, so eat the fish and spit out the bones.
The percentage range varies by lender, but expect to only be approved with a DTI ratio of 47% or less. While qualifying for a HELOC is more dependent on your home equity than your credit score, good or excellent credit makes it easier to qualify. A good average to shoot for is 620 or higher. Plus, the better your credit score, the better your interest rate.
Ridge Lending All in One, first position HELOC
AFCU does 80% LTV on NOO. Utah
Americafirst 80% LTV on noo 65% LTV Utah
Arvest Bank AR, OK, AL, MO
Bank of West (BNP Paribas) 60% LTV ELOCs
BB&T will loan on a rental portfolio
BBVA Compass
Bellwether NH and MA 85% to 100%, draw 10 yrs
Boeing employee credit union
California: Cal Coast Credit Union and Fremont Bank
Citizens Bank -Minnesota, only in-state. Kyle Potswald
Citizens first position HELOC
CMG a financial 70% LTV
East West Bank, up to 60% LTV with "no docs"
Figure 80% on a rental, not in LLC
FirstBank CO a and AZ 75% LTV
First Florida Credit Union https://firstflorida.cumortgagecenter.com
First Commonwealth
First Midwest, up to 90% Chicago area
First Republic - California
Fulton Bank
GFA Federal Credit Union 10 yr draw, 10 yr repay, MA
Granite State CU, NH 90-100%
Great Lakes Credit Union
Veritex, Texas HELOC
Hanscom FCU, Florida
HSBC 70%, for premier clients only
Horizon, Kalamazoo Michigan
Huntington 75% LTV 5 yr IO product available
Hurst Lending and Insurance Investment property HELOC in Texas. No seasoning.
Key Bank, FLorida flexible lender, HELOCs on second
homes and rental properties. 90% LTV on primary.
Mountain America Credit Union in Utah, Idaho, Montana, Nevada, Arizona, New Mexico. 85% LTV, promo rate of 1.99%. Can refinance an existing mortgage on investment property to a shorter term "Mini Mortgage."
Merchants Bank MN See Pavel Ushakov
PenFed - max 3 other properties, 89% LTV
Quorum Federal Credit Union 80% equity, owned by LLC is OK. 5 year interest only payments. New York State. Tiffany Mazzoccoli. 2021
Regions- yes HELOC but no LOC
SCCU Florida 70% LTV, 6.25% interest only, not LLC
Signature Federal Credit Union 75% LTV
Sound CU "non-owner occupied HELOC, capped at $150K and interest rates are prime + 2%, 3% or 4%, based on credit, not to exceed 70% ltv."
S&T Pennsylvania
TCF Bank
TD Bank 75% line with FICO about 740
TIAA Direct was EverBank
Trustco
Union Bank, specializes in noo HELOC. KCMO, NE
Union Bank, MUFG.
Upstate Bank in Rochester NY, LOC up to 80%
US Bank
Vectra Bank - Colo
Workers Credit Union, MA 80-100%
WSFS...up to 70% on rental
Zions Bank, Utah
Wisdom from Ann Bellamy:
I also never keep much cash in a bank account in the same bank where I have any mortgage. For example, I have a mortgage and operating account at Bank X for one of my businesses. I pull out most of the surplus cash from the operating account and put it in an account owned by the same company but in Bank Y.