Equity Line of Credit on Investment Property

7 Replies

I getting feedback that lenders are not doing equity lines of credit on investment properties?  Is this consistent with what you all are aware of? I'm getting mixed messages...

When I looked for a HELOC we spoke to many banks before finding the right fit. It took about 20 working hours.

When you find the bank for your, keep them happy.  We used a regional bank.

@Guac F. . That statement is very general. How many banks/lenders have you reached out to? 

I don't think that is correct.  My personal banker is encouraging me to take one out to use for my real estate strategy.

Try Local Banks & Credit Unions first, don't skip any. I see a lot of clients getting outside of the box type of loans from them.

I have seen several lenders that will do LOCs on investment property but the terms are not very favorable. 75% CLTV or less and higher rates.

Thanks everyone.  Appreciate the feedback...I'm still shopping

It's funny how many lender reps are so opinionated and speak on what they are not certain of.  I had a rep tell me "no one is doing lines of credit on investment property..." smh

Hey Guac,

Your best bet is to find a regional bank with a strong background in real estate. A regional bank is one that has around 10-billion in assets. Chances are any investment property line of credit will be a 70/30 LTV with a rate close to prime plus 1%.

Furthermore, let’s say that you have a 100k line of credit. If one month in you use the entire amount to fund a down payment for a new property you wanted, your bank will likely ask you to term the loan at, aka have fixed monthly payments or pay it back.

This ties into a larger picture of what is your real estate strategy? I’ve just been going through what you are asking.

I hope that helps

Jon

Join the Largest Real Estate Investing Community

Basic membership is free, forever.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.