Hello everyone. I am new in this business... i have a rental property which is almost completely paid it off, appraised at about 110k... my question to you guys if anyone aware of any financial institutions in NY state that will do a HELOC against rental property? Appreciate your inputs.
Your best luck might be with a local bank/credit union. Generally many don't like to do that on investment properties but I believe that actually Wells Fargo seems to be somewhat relaxed on that.
Refi! Get some long term cheap debt while rates are low.
I've been a refi machine. Almost $40m in new loans to lock everything in the 4's and get as
much ammo (liquidity) as I can for what may be an upcoming downturn in CRE
(All this refi in the 4s makes me lol that my primary home is almost 6%. But I can't refi my house since self employed RE investors don't mix well with vanilla conforming home loans)
Wells Fargo holds my first mortgage on a rental and will do a HELOC on a rental property to 60% LTV. Rates and fees seem reasonable. I didn't have any luck with local banks or credit unions. Good luck! I
@Ben Miles I have some LINES on rental property with Wells Fargo too. Check out your statement. Look at the borrowing terms. The LINE is called "Prime Equity Line". Contrast that to an "Home Equity Line of Credit" ... which applies to owner occupied residential property. distinguishes between them by occupancy status. Many sections of law apply differently to owner occupied, like NCGS 45-21.16C and NCGS 45-21.29 and all of Article 11. This is true of many states, if not all. Check when the laws came into being. 2009, +/- a year for most states. Remember the great recession? Most on BP probably won't, unfortunately.
Also, lines are handled differently from a standard Deed of Trust. If you look at the recorded instrument in my state, says "Equity Line of Credit Deed of Trust (Governed by Article 9, chapter 45, North Carolina General Statutes)". A LOC and a HELOC are two completely different things, governed by different laws.
See also . It is to some degree semantics. So...
Why, Chris, why do you keep harping on this?
The reason I post this (over and over) is that some people in BP Nation reading posts about HELOC on rentals will think they can go to a bank branch and get a HELOC. They want a LINE (SECOND mortgage) against a rental... and most banks will readily do them against your primary residence but not a rental.