Scottsdale, AZ · Member since 2017 · 2 posts · 0 votes
I am wanting to know if it's possible to get a HELOC on a property that i make my primary and then to shortly after getting the HELOC turn it back into a rental. I have about 350k in equity currently and need 100k to finance another rental.
It is possible but some banks and credit unions may take issue with the fact that it turns into a rental after they fund the note. You may want to feel out a couple of places in your area to see what their feelings are before you approach the institution you would prefer to do business with.
@Andrew Macdonald There are some banks that will still do HELOC on investments, but not many. The few that do will not provide as high of a LTV and the interest rates are a lot higher than a standard HELOC. Wells Fargo will do it, but they can be a nightmare to work with. I have seen folks post Regions Bank on the forums as another, but don't have any personal experience working with them.
Also, to confirm what Lynn stated, I have a HELOC that I recently opened and it does contain a clause that they can call the note in, in full, if you do not maintain it as your primary residence.