Denham Springs, LA · Member since 2015 · 133 posts · 35 votes
I was offered a 4.5 variable rate, closing cost of around $300. The way it is amortized is a little different. If it's under 5k it's amoritized 5 years. 5 to 10k 10 years, and over 15k, 15 years.
This seems like a pretty good rate, I know some offer 2% but it's just an introductory period.
I believe I have what most banks refer to as tier 1 credit, so I qualify for their best rates. The rates go up as loan to value goes up, best rates are at 80% and increase if I go up to 90%.
So do y'all think this is a pretty good HELOC, or should I keep looking? any considerations I should think of?
Northern, CA · Member since 2014 · 674 posts · 444 votes
9y
@Jeffrey Smith@Chad C. I went through sdfcu.com. The fees were a bit high but again I didn't care, still the cheapest money available and will more than pay for itself the first time I use it. Probably could have closed in 3-4 weeks but was delayed due to shortage of appraisers in my area.
Orange County, CA · Member since 2016 · 33 posts · 13 votes
9y
Question to those using HELOCs: I'm wondering how HELOC usage effects your overall credit score if balances are shooting up and being paid off within a short time period, over and over again. Has anyone experienced negative effects to your overall credit with this type usage if it's tied to you personally?
Investor · Los Angeles, CA · Member since 2015 · 19 posts · 3 votes
9y
@Lee S.: Great find actually. They are on the list of lenders i spoke with. The note i have for them is "Max 4 Loans", and nothing else. I guess I should have included that in my criteria. But based on the website description, and the fact they provide 80LTV on owner-occupied, it is very unlikely that they provide the same LTV for OO primary and NOO Multi. (80LTV). I'd be willing to bet they will do less on NOO Multi
Investor · Los Angeles, CA · Member since 2015 · 19 posts · 3 votes
9y
@Lee S., Agreed, i didn't mention the 4 property limit. you might be right, but I would be VERY VERY surprised if they do 80LTV on NOO Multi's. Based on all the research I've done, this is the "Gotcha's" that i see in the fine print that you don't know until you call and ask those specific questions.
They say OO 1-4 unit, Vacation or investment. What this often mean's is : 1-4 Unit OO, Vacation or NOO SFR (No NOO Multi's)
80LTV is a very blanket statement. Everyone has additional limits depending the property type, line amount, and property value. But Property type is usually the difference. Although I didn't specifically ask, i don't remember talking to any banks that had same limits for NOO multi's and OO SFR. (I found numerous bank's that would do 55-70LTV on NOO Multi's).
Investor · Los Angeles, CA · Member since 2015 · 19 posts · 3 votes
9y
@Lee S., So on some more thought, I wouldn't be that surprised, since iI did find 2 lenders that would do 80LTV (they just wouldn't work for me due to membership requirements or location of property requirement), but just based on the fact golden1 does 80 LTV on SFR, I think it's unlikely that they have the same LTV requirement for NOO multi's. I like being proven wrong though :). Either case, this one won't work for me (due to property limit), but might be useful for others....
Mount Pleasant, SC · Member since 2016 · 13 posts · 5 votes
9y
Peter T. the commercial loan is in the name of my LLC (of course I had to personally endorse the note) and that results in a shorter draw period and a higher rate than you could obtain using your primary residence as collateral. It's not that easy to get banks to do HELOCs using equity in investment properties but it is possible.
Peter T. the commercial loan is in the name of my LLC (of course I had to personally endorse the note) and that results in a shorter draw period and a higher rate than you could obtain using your primary residence as collateral. It's not that easy to get banks to do HELOCs using equity in investment properties but it is possible.
Ok I thought you meant a true commercial property (5+ units or a portfolio of properties).
Rental Property Investor · San Francisco, CA · Member since 2013 · 1k+ posts · 1k+ votes
9y
@Greg S. I'm curious which bank had the Bay Area residency requirement? I've also heard that finding a heloc on NNO 2-4's is the equivalent of hunting down a white elephant :)
BTW, did you find banks willing to do 70% LTV? When I briefly looked 1+ year ago that wasn't even an option.
Investor · Los Angeles, CA · Member since 2015 · 19 posts · 3 votes
9y
@Amit M., RedwoodCU.org is the one I found in NorCal that will do 80LTV, my notes from talking to the lender are below. All these notes are from about 1.5 years ago, so program details may have changed. There might be some other limitations I'm not aware of since i didn't get too much detail after I found out that I won't qualify for membership.
Wescom will do 70LTV, But you have to live or work in LA/OC/VTA counties.
UnionBank will do 65.
Calbank & Trust will do 55 LTV.
RedwoodCU.org :
Membership requirements : Membership open to anyone living or working in the greater North Bay and San Francisco.