Can I take a HELOC on rental home

Question

I am interested in pulling some equity out of some of my single family rental homes. Can I take HELOC’s out on rental homes? If so where could I do it?

Kim Meredith Hampton · Answer

@David Huston i don’t think you can get a Heloc on rental properties, only your primary house. you could try and get a line of credit?

Robert Belz · Answer

@David Huston

You can definitely use the equity found in your investment properties to get a Line of Credit. I used a LOC on an investment property to help fund the rehab of a recently purchased property.

The process is very straightforward: I called around to a lot of banks/credit unions and found a handful of credit unions that offered a 'Non-Owner HELOC'. The lender orders an appraisal and charges some closing costs, and I ended up getting a HELOC through a local credit union with a LTV of 75%.

Happy to discuss more if you'd like.

Sathiya Gane · Answer

Yes you can on investment property upto 80% Equity and you should have at max 3 investment homes .plz reach out to penfed if you fit above criteria .

Sean Martin · Answer

I'm using Lending Home for this purpose. They are giving me one for my rental. They only makes loans for rentals, not primaries. They only do business in about 29 states though, so you would have to check. There's some other similar ones out there too.

Justin Phillips · Answer

@David Huston This loan is a little different, the initial draw on the credit line pays off your current mortgage. From there, you have access to every principle payment made, it increases cashflow, helps with DTI and there's a myriad of other investor benefits.

I always recommend everyone educate themselves on this loan as an option. It's all about making your money and payments work for you, not the bank. My wife and I have it on our rental, and it's been an awesome financial tool.

Sathiya Gane · Answer

With penfed you may not and as suggested by folks definitely you can find a credit union who does that ..

David Huston · Answer

@Justin Phillips I have mortgages on these homes so I don’t think they wouldn’t be 1st position.

David Huston · Answer

@Sean Martin thank you. I will check them out.

David Huston · Answer

@Sathiya Gane will I not qualify if I have 5 rental homes?

Justin Phillips · Answer

@David Huston Hey David, you can absolutely set-up a Heloc on a rental. I'm with a broker based in Queen Creek, and we specialize in a 1st position Heloc that has many advantages for investors. I'd be happy to assist you in getting one set-up based on these current inflated values.

Can I take a HELOC on rental home

Most Popular Reply