heloc on rental properties

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Lloyd Hassell
Member since 2022 · 6 posts · 7 votes
3y

HI Sophia,

The answer to your question is simple and straight forward. Start with TD Bank, HELOCs on investment properties are a part of their lending business. I have an application in process on an investment property at the moment. I found them as a potential lender as a result of a Google search. I also have a HELOC application approved on another investment property with a credit union I belong to. These lenders want to see strong credit, verified personal income, assets vs. liabilities, verified rents, occupancy and a debt to income ratio no higher than 43%.Remember though, there are exceptions to every rule (they may extend the limit on DTI).

There are local banks and credit unions that will underwrite these lines of credit. I found other small banks here in New Jersey that do. In addition, some large banks other than TD do as well (their names escape me at the moment). 

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  • Caroline Gerardo
    Lender · Washington DC · Member since 2015 · 2k+ posts · 2k+ votes
    3y

    Full documentation needed (IRS returns with net positive is used) ; 720 FICO score ; 75% LTV there are three if you have the pieces. Not all states.

    0Reply
  • Sophia Oberlander
    OP
    Member since 2022 · 5 posts · 7 votes
    3y
    Quote from @Caroline Gerardo:

    Full documentation needed (IRS returns with net positive is used) ; 720 FICO score ; 75% LTV there are three if you have the pieces. Not all states.

    Hi @Caroline Gerardo- is this something your company does. Are the rates similar to what was posted? Would love to discuss more after the holiday  

    0Reply
  • Dwayne GhantPro Member
    Investor · Member since 2022 · 53 posts · 23 votes
    3y

    @Sophia Oberlander: Thanks for asking this question ... I have the exact same question. I'm currently search for any banks or lenders that do HELOC on rental properties.

    @Caroline Gerardo: Would you happen to have a list for South Carolina and Pennsylvania.  Any advice is appreciated  

    0Reply
  • Calvin Thomas
    Developer · New York City, NY · Member since 2015 · 812 posts · 718 votes
    3y
    Quote from @Sophia Oberlander:

    hi all- any banks or lenders you know doing heloc on rental properties? I saw this post from a fellow bigger pockets follower and wondering if anyone else knows where I can access (outside of Hawaii)

    Have you checked your local credit unions?

    0Reply
  • Caroline Gerardo
    Lender · Washington DC · Member since 2015 · 2k+ posts · 2k+ votes
    3y

    Local credit unions not a source @Calvin Thomas   they might give you a small credit card depending on income and credit. 

    Many banks pulled out of HELOCs even for owner occupied.

    I don't know what rates were posted.

    Feel free to call me

    0Reply
  • Calvin Thomas
    Developer · New York City, NY · Member since 2015 · 812 posts · 718 votes
    3y
    Quote from @Caroline Gerardo:

    Local credit unions not a source @Calvin Thomas   they might give you a small credit card depending on income and credit. 

    Many banks pulled out of HELOCs even for owner occupied.

    I don't know what rates were posted.

    Feel free to call me



    Not sure what you're talking about.  I have a few mortgages AND HELCOs from various credit unions around NY Metro. You are seriously mistaken. Seriously.
    4Reply
  • Lloyd Hassell
    Member since 2022 · 6 posts · 7 votes
    3y

    HI Sophia,

    The answer to your question is simple and straight forward. Start with TD Bank, HELOCs on investment properties are a part of their lending business. I have an application in process on an investment property at the moment. I found them as a potential lender as a result of a Google search. I also have a HELOC application approved on another investment property with a credit union I belong to. These lenders want to see strong credit, verified personal income, assets vs. liabilities, verified rents, occupancy and a debt to income ratio no higher than 43%.Remember though, there are exceptions to every rule (they may extend the limit on DTI).

    There are local banks and credit unions that will underwrite these lines of credit. I found other small banks here in New Jersey that do. In addition, some large banks other than TD do as well (their names escape me at the moment). 

    5Reply
  • Caroline Gerardo
    Lender · Washington DC · Member since 2015 · 2k+ posts · 2k+ votes
    3y

    @Calvin Thomas You closed HELOCS in the past. Since the 2022 meltdown four of the big box banks no longer offer HELOC at all. Getting a HELOC on nonowner is VERY hard. The question is only about HELOC non owner second position, not first mortgages.

    Huntington the biggest HELOC lender will not do non owner, Chase no, Wells No, Bof A no, all the military credit unions no, Penfed no, Quorum CU no...

    TD will do in 10 states not CA start rate 11.9% cap 18 qualify at 18% they only do 721 FICO so full doc perfect experienced investor no California where Sophia is located. Very hard to get. (She is California).

    Symmetry and Spring EQ qualify at 18 as well and are wholesale both are in about 12 states.

    Please list who does a HELOC investment loan for a customer direct.

    3Reply
  • Calvin Thomas
    Developer · New York City, NY · Member since 2015 · 812 posts · 718 votes
    3y
    Quote from @Caroline Gerardo:

    @Calvin Thomas You closed HELOCS in the past. Since the 2022 meltdown four of the big box banks no longer offer HELOC at all. Getting a HELOC on nonowner is VERY hard. The question is only about HELOC non owner second position, not first mortgages.

    Huntington the biggest HELOC lender will not do non owner, Chase no, Wells No, Bof A no, all the military credit unions no, Penfed no, Quorum CU no...

    TD will do in 10 states not CA start rate 11.9% cap 18 qualify at 18% they only do 721 FICO so full doc perfect experienced investor no California where Sophia is located. Very hard to get. (She is California).

    Symmetry and Spring EQ qualify at 18 as well and are wholesale both are in about 12 states.

    Please list who does a HELOC investment loan for a customer direct.

    I've not had any issues with obtaining a HELCO in New York, New Jersey and Connecticut.  I just received another one six weeks ago from M & T Bank.  City National Bank, Webster, Bethpage, MSCU & Western Connecticut FCU is also providing HELCOs on investment properties.  

    3Reply
  • Caroline Gerardo
    Lender · Washington DC · Member since 2015 · 2k+ posts · 2k+ votes
    3y

    M& T only in: Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Vermont, Virginia, Washington, DC  not CA  ONLY owner occupied today : 

    Acceptable Collateral

    • 1- to 4-family owner-occupied homes, town homes and condom​​iniums
    • Vacation homes (only available for lines up to $250,000)
    • Deeded manufactured homes (only available for lines up to $100,000)​7

    All the others also a no in CA @Calvin Thomas

    0Reply
  • Calvin Thomas
    Developer · New York City, NY · Member since 2015 · 812 posts · 718 votes
    3y
    Quote from @Caroline Gerardo:

    M& T only in: Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Vermont, Virginia, Washington, DC  not CA  ONLY owner occupied today : 

    Acceptable Collateral

    • 1- to 4-family owner-occupied homes, town homes and condom​​iniums
    • Vacation homes (only available for lines up to $250,000)
    • Deeded manufactured homes (only available for lines up to $100,000)​7

    All the others also a no in CA @Calvin Thomas


    I'm not in in Cali.  
    0Reply
  • Caroline Gerardo
    Lender · Washington DC · Member since 2015 · 2k+ posts · 2k+ votes
    3y

    @Calvin Thomas the person asking the question is so local choices in Northeast not answers

    0Reply
  • Kenny Kuramoto
    Member since 2022 · 69 posts · 20 votes
    3y
    Quote from @Sophia Oberlander:

    hi all- any banks or lenders you know doing heloc on rental properties? I saw this post from a fellow bigger pockets follower and wondering if anyone else knows where I can access (outside of Hawaii)

    Just to verify, You have  Rental Property you want to pull a Line of Credit from? Or Do you already have a rental property you trying to pull the HELOC out.
    0Reply
  • Harjeet BhattiPro Member
    Lender · Glenview IL- CDLP NMLS#230554 · Member since 2015 · 2k+ posts · 747 votes
    3y

    @Sophia Oberlander @Dwayne Ghant We can offer HELOAN on investment property in all States except AK, HI, ID, MA, MO, ND, NY, SD, WV, WY. $25000 minimum loan requirement. 

    2Reply
  • Leo R.
    Investor · Member since 2021 · 591 posts · 695 votes
    3y

    @Sophia Oberlander there aren't many, but I have found some...in my area, America First Credit Union will do a heloc on a rental property. I'd suggest checking out your local credit unions.

    Good luck!

    1Reply
  • Andres Ospina
    Real Estate Agent · NJ · Member since 2019 · 48 posts · 16 votes
    3y
    Quote from @Lloyd Hassell:

    HI Sophia,

    The answer to your question is simple and straight forward. Start with TD Bank, HELOCs on investment properties are a part of their lending business. I have an application in process on an investment property at the moment. I found them as a potential lender as a result of a Google search. I also have a HELOC application approved on another investment property with a credit union I belong to. These lenders want to see strong credit, verified personal income, assets vs. liabilities, verified rents, occupancy and a debt to income ratio no higher than 43%.Remember though, there are exceptions to every rule (they may extend the limit on DTI).

    There are local banks and credit unions that will underwrite these lines of credit. I found other small banks here in New Jersey that do. In addition, some large banks other than TD do as well (their names escape me at the moment). 


     Could you share the banks, credit unions that will do line of credits on investment properties. Thanks!

    0Reply
  • Lloyd Hassell
    Member since 2022 · 6 posts · 7 votes
    3y

    Union Building Trades Federal Credit Union and Ascendia Bank.

    1Reply
  • John T.
    Rental Property Investor · Central U. S. A. · Member since 2013 · 296 posts · 149 votes
    3y

    @Sophia Oberlander you might try QuickenLoans

    0Reply
  • Calvin Thomas
    Developer · New York City, NY · Member since 2015 · 812 posts · 718 votes
    3y
    Quote from @Caroline Gerardo:

    @Calvin Thomas the person asking the question is so local choices in Northeast not answers


    Point being, check credit unions and other banks within California; not just mortgage brokers such as yourself.
    0Reply
  • Michael Oliveira
    San Marcos, CA · Member since 2019 · 26 posts · 3 votes
    3y

    I spoke with California Coast Credit Union here in San Diego, CA a week ago and they indicated they offer a HELOC on investment properties up to 60% CLTV at a rate of Prime + 1%. About to start the process with myself.

    0Reply
  • James Duffy
    Investor · Minneapolis, MN · Member since 2021 · 12 posts · 4 votes
    3y

    Great information everyone - what kind of fees are you seeing to close the loan and LTV? I recently was approved for one and fees include 1% broker fee, 1% lender fee and another $3k in doc prep, appraisal and title fees. Of course if I went direct to a lender, I could avoid the broker fee. Thanks!

    0Reply
  • Gp G.
    Investor · Atlanta · Member since 2019 · 592 posts · 98 votes
    3y

    I am also looking around Georgia for long time did not find any such bank after many, many calls to multiple banks. Any advice highly appreciated

    1Reply
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