Home Equity Line of Credit on Investment Properties

8 Replies

I am just doing some research on this strategy. If you get HELOCs on your investment properties please let us know what bank or institution you use. Also what is your strategy in using your investment property HELOC?

Also please let us know what are the terms you usually look for on your HELOC? 80%? 75%?

Confused....DO you mean you live in a duplex and you would like to get a HELOC out of it? Or do mean an investment. You can get an equity line on a investment but not a HELOC.

Originally posted by @Will Zena :

@Michele B. Sorry, it is on an investment property I do not live in. So you can get an equity line of credit just not a home equity line of credit you are saying?

 Yes you can its not HOME equity unless you live there. You can get an equity loan on anything you own. 

@Will Zena , some financial institutions offer Lines Of Credit using investment property as collateral. One is PenFed. I filled out an application with them a few months ago. It was easy, quick, and I think they offered 85% LTV, maybe 90%. Then we hit a snag. PenFed has a rule that the individual setting up the LoC can own no more than three properties and that number includes your primary residence if you own one. I owned more than 3 properties and the loan was refused solely for that reason.

So, if you don't own more than 3 properties, PenFed is a great option to try.

In the most recent Bigger Pockets podcast @David Greene mentions he loves HELOCs and gets them on every property he owns. Hopefully he can share other companies that will allow you to get a HELOC even though you have more than 3 properties.

Originally posted by @Randy E. :

@Will Zena , some financial institutions offer Lines Of Credit using investment property as collateral. One is PenFed. I filled out an application with them a few months ago. It was easy, quick, and I think they offered 85% LTV, maybe 90%. Then we hit a snag. PenFed has a rule that the individual setting up the LoC can own no more than three properties and that number includes your primary residence if you own one. I owned more than 3 properties and the loan was refused solely for that reason.

So, if you don't own more than 3 properties, PenFed is a great option to try.

Do you know if that was just a limitation on getting a LOC on the investment property or is that also a restriction on a HELOC as well on a primary if you have more than three properties?

Originally posted by @Jason G. :

Do you know if that was just a limitation on getting a LOC on the investment property or is that also a restriction on a HELOC as well on a primary if you have more than three properties?

I don't know if that applied to a HELOC on your primary residence. It never crossed my mind to ask because it wasn't an option in my case.

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