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Private Lending & Conventional Mortgage Advice
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Need help with HELOC on rental property....can this be done?

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Posted Dec 14 2021, 14:32

Hello there, I am new here so I am hoping I found the correct forum in which to post. I am a rookie with only two rentals and I live in the Dallas area. I would like to do a HELOC on one of my rental properties because this is the ONLY property that currently has equity. I have called several banks (credit unions) and all of them have said they do not do HELOCs on an investment property---never heard of it. Does anyone know of any banks in my area who might be willing to work with us? If not, I can do national banks too. Is this even possible? Thanks!

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Brandon Rush
  • Real Estate Agent
  • Portland, CT
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Brandon Rush
  • Real Estate Agent
  • Portland, CT
Replied Dec 14 2021, 14:52

Hey Joy,

It sure can. It may not be as easy as obtaining a HELOC on an owner occupied property, but many have done it. My advice would be to call around to some of your local banks and credit unions and ask them. You are bound to find someone who can offer it to you.

Good Luck!

Real Estate Agent Massachusetts (#9576248) and Connecticut (#RES.0824703)

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Replied Dec 15 2021, 06:07

Hi Joy,

please check link out below regarding your situation. Thanks

https://acceleratedbanking.com...

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Kerry Baird
  • Rental Property Investor
  • Melbourne, FL
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Kerry Baird
  • Rental Property Investor
  • Melbourne, FL
Replied Dec 15 2021, 06:39

I've gleaned these lenders from the kind people on BP. I have used PenFed and TD Bank for HELOCs on investment property. Post back if you find another lender who serves you well, and I will add them to my list and pay it forward. These were largely sourced pre-CV19, so eat the fish and spit out the bones.

The DTI percentage range varies by lender, and is less than what you will find for an owner occupied property, due to lender risk. While qualifying for a HELOC is dependent on your home equity and your credit score, good or excellent credit makes it easier to qualify. A good average to shoot for is 620 or higher. Plus, the better your credit score, the better your interest rate.

Ridge Lending All in One, first position HELOC

AFCU does 80% LTV on NOO. Utah

Americafirst 80% LTV on noo 65% LTV Utah

Arvest Bank AR, OK, AL, MO

Aven…not on investment properties.

Bank of Souther California

Bank of West (BNP Paribas) 60% LTV CA, AZ

BB&T will loan on a rental portfolio

BBVA, now PNC

Bellwether Community Credit Union, NH and MA 85% to 100%, draw 10 yrs

BMO Harris, 3 HELOCs to 70% LTV

Boeing employee credit union

Cal Coast Credit Union, CA

Citizens Bank -Minnesota, only in-state. Kyle Potswald

Citizens first position HELOC

CMG Financial 70% LTV

Consolidated CCU, high LTV NOO LOC, OR, WA

East West Bank, up to 60% LTV with "no docs" San Fran area

Figure 80% on a rental, not in LLC

Finance of America, 95% CLTV, second home only, 680 FICO, not TX

FirstBank CO and AZ 75% LTV

First Florida Credit Union https://firstflorida.cumortgag...

First Commonwealth

First Midwest, IL up to 90% Chicago area

First Tech Federal. Wester states. Up to 80% if FICO is over 780, no appraisal under $250k value.

First Republic - California

Fremont Bank, California

Fulton Bank

GFA Federal Credit Union 10 yr draw, 10 yr repay, MA

Granite State CU, NH 90-100%

Great Lakes Credit Union

GTE Financial, FL w 2 yrs tax history on property

Hanscom FCU, Florida

HSBC 70%, for premier clients only

Horizon, Kalamazoo Michigan

Huntington 75% LTV 5 yr IO product available. Someone reported 80%…need confirmation

Hurst Lending and Insurance Investment property HELOC in Texas. No seasoning. Bridge, portfolio, foreign national and other specialty loan products.

Key Bank, FLorida flexible lender, HELOCs on second

homes and rental properties. 90% LTV on primary.

Merchants Bank MN See Pavel Ushakov

Mountain America CU Utah, ID, MT, NV, AZ, NM. 85% LTV, promo rate of 1.99%. Can refi an existing mortgage to a shorter term "Mini Mortgage."

Navy Federal 80% LTV

Norway Savings Bank, Maine

Omaha Mortgage

PenFed - max 3 other properties, including primary. 80% LTV, prime + 1%, <4 properties

Quorum Federal Credit Union 80% LTV, owned by LLC is OK. Very flexible lender. NY. 5 year draw, IO for 5 yrs and PI for 10 year repayment period.

Red Canoe Credit Union, WA OR

Regions- yes HELOC but no LOC

River Bank & Trust, AL

SCCU Florida 80% LTV, 2.75% first year promo, not LLC

SECU NC 65% LTV rate 2.75% Oct 2021

Signature Federal Credit Union 75% LTV (100% on primary residence)

Silvergate Bank

Sound CU "non-owner occupied HELOC, capped at $150K and interest rates are prime + 2%, 3% or 4%, based on credit, not to exceed 70% ltv."

S&T Pennsylvania

TCF Bank

TD Bank 75% line with FICO about 740. Up to 4 properties.

TIAA Direct was EverBank

Torrey Pines Bank

Troy Bank & Trust, AL

Trustco

Union Bank, specializes in noo HELOC. KCMO, NE

Union Bank, MUFG.

Upstate Bank in Rochester NY, LOC up to 80%

US Bank 80%

Vectra Bank - Colo

Veritex, Texas HELOC

WellsFargo 60% LTV Up to 5 properties.

Workers Credit Union, MA 80-100%

WSFS...up to 70% on rental

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Zack Karp
  • Lender
  • Schaumburg, IL
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Zack Karp
  • Lender
  • Schaumburg, IL
Replied Dec 15 2021, 08:37

@Kerry Baird First Midwest is 75% LTV, 1st position lien only.

Might be helpful to note on your list whether it's 1st lien or 2nd lien position.  I would guess that 90% of the people asking for an investment property heloc are looking for 2nd lien position, while less than half your list likely allows a 2nd lien position heloc on an investment property.

But this is a great list, super helpful!

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Replied Dec 15 2021, 13:59

Thank you so much Zack Karp, Kerry Baird and Brandon Rush!  This is great info--THANK YOU!  I will check back in with an update!

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Marc Rice
  • Real Estate Agent
  • Columbus, OH
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Marc Rice
  • Real Estate Agent
  • Columbus, OH
Replied Dec 16 2021, 07:00
Originally posted by @Kerry Baird:

I've gleaned these lenders from the kind people on BP. I have used PenFed and TD Bank for HELOCs on investment property. Post back if you find another lender who serves you well, and I will add them to my list and pay it forward. These were largely sourced pre-CV19, so eat the fish and spit out the bones.

The DTI percentage range varies by lender, and is less than what you will find for an owner occupied property, due to lender risk. While qualifying for a HELOC is dependent on your home equity and your credit score, good or excellent credit makes it easier to qualify. A good average to shoot for is 620 or higher. Plus, the better your credit score, the better your interest rate.

Ridge Lending All in One, first position HELOC

AFCU does 80% LTV on NOO. Utah

Americafirst 80% LTV on noo 65% LTV Utah

Arvest Bank AR, OK, AL, MO

Aven…not on investment properties.

Bank of Souther California

Bank of West (BNP Paribas) 60% LTV CA, AZ

BB&T will loan on a rental portfolio

BBVA, now PNC

Bellwether Community Credit Union, NH and MA 85% to 100%, draw 10 yrs

BMO Harris, 3 HELOCs to 70% LTV

Boeing employee credit union

Cal Coast Credit Union, CA

Citizens Bank -Minnesota, only in-state. Kyle Potswald

Citizens first position HELOC

CMG Financial 70% LTV

Consolidated CCU, high LTV NOO LOC, OR, WA

East West Bank, up to 60% LTV with "no docs" San Fran area

Figure 80% on a rental, not in LLC

Finance of America, 95% CLTV, second home only, 680 FICO, not TX

FirstBank CO and AZ 75% LTV

First Florida Credit Union https://firstflorida.cumortgag...

First Commonwealth

First Midwest, IL up to 90% Chicago area

First Tech Federal. Wester states. Up to 80% if FICO is over 780, no appraisal under $250k value.

First Republic - California

Fremont Bank, California

Fulton Bank

GFA Federal Credit Union 10 yr draw, 10 yr repay, MA

Granite State CU, NH 90-100%

Great Lakes Credit Union

GTE Financial, FL w 2 yrs tax history on property

Hanscom FCU, Florida

HSBC 70%, for premier clients only

Horizon, Kalamazoo Michigan

Huntington 75% LTV 5 yr IO product available. Someone reported 80%…need confirmation

Hurst Lending and Insurance Investment property HELOC in Texas. No seasoning. Bridge, portfolio, foreign national and other specialty loan products.

Key Bank, FLorida flexible lender, HELOCs on second

homes and rental properties. 90% LTV on primary.

Merchants Bank MN See Pavel Ushakov

Mountain America CU Utah, ID, MT, NV, AZ, NM. 85% LTV, promo rate of 1.99%. Can refi an existing mortgage to a shorter term "Mini Mortgage."

Navy Federal 80% LTV

Norway Savings Bank, Maine

Omaha Mortgage

PenFed - max 3 other properties, including primary. 80% LTV, prime + 1%, <4 properties

Quorum Federal Credit Union 80% LTV, owned by LLC is OK. Very flexible lender. NY. 5 year draw, IO for 5 yrs and PI for 10 year repayment period.

Red Canoe Credit Union, WA OR

Regions- yes HELOC but no LOC

River Bank & Trust, AL

SCCU Florida 80% LTV, 2.75% first year promo, not LLC

SECU NC 65% LTV rate 2.75% Oct 2021

Signature Federal Credit Union 75% LTV (100% on primary residence)

Silvergate Bank

Sound CU "non-owner occupied HELOC, capped at $150K and interest rates are prime + 2%, 3% or 4%, based on credit, not to exceed 70% ltv."

S&T Pennsylvania

TCF Bank

TD Bank 75% line with FICO about 740. Up to 4 properties.

TIAA Direct was EverBank

Torrey Pines Bank

Troy Bank & Trust, AL

Trustco

Union Bank, specializes in noo HELOC. KCMO, NE

Union Bank, MUFG.

Upstate Bank in Rochester NY, LOC up to 80%

US Bank 80%

Vectra Bank - Colo

Veritex, Texas HELOC

WellsFargo 60% LTV Up to 5 properties.

Workers Credit Union, MA 80-100%

WSFS...up to 70% on rental

 The GOAT post.

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Kerry Baird
  • Rental Property Investor
  • Melbourne, FL
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Kerry Baird
  • Rental Property Investor
  • Melbourne, FL
Replied Dec 16 2021, 08:52

@Marc Rice

Make me laugh!