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Account Closed
1
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3
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Need help with HELOC on rental property....can this be done?

Account Closed
Posted

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
Pro Member
  • Real Estate Agent
  • Portland, CT
824
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744
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Brandon Rush
Pro Member
  • Real Estate Agent
  • Portland, CT
Replied

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!

  • Brandon Rush
  • User Stats

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    Replied

    Hi Joy,

    please check link out below regarding your situation. Thanks

    https://acceleratedbanking.com...

    PropStream logo
    PropStream
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    Nationwide property data Use our robust, multi-sourced data to find off-market properties and close your next deal.

    User Stats

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    2,554
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    Kerry Baird
    Pro Member
    • Rental Property Investor
    • Melbourne, FL
    2,554
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    3,703
    Posts
    Kerry Baird
    Pro Member
    • Rental Property Investor
    • Melbourne, FL
    Replied

    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

    User Stats

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    758
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    Zack Karp
    Pro Member
    • Lender
    • Schaumburg, IL
    758
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    812
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    Zack Karp
    Pro Member
    • Lender
    • Schaumburg, IL
    Replied

    @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!

  • Zack Karp
  • 847-387-5513
  • Account Closed
    1
    Votes |
    3
    Posts
    Account Closed
    Replied

    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
    Agent
    • Real Estate Agent
    • Columbus, OH
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    Marc Rice
    Agent
    • Real Estate Agent
    • Columbus, OH
    Replied
    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
    Pro Member
    • Rental Property Investor
    • Melbourne, FL
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    Kerry Baird
    Pro Member
    • Rental Property Investor
    • Melbourne, FL
    Replied

    @Marc Rice

    Make me laugh!