Updated over 2 years ago on . Most recent reply
Approved for HELOC and had to walk away from closing
RE Investors - I went through 2 months of paperwork to finally get approved for a $100k HELOC on my only property that I recently turned into a mid-term rental. I got notice today from the bank (Navy Federal Credit Union) that I have to close in the next 2 weeks and the notary MUST meet us to close at the physical property address. But I have Airbnb tenants in there during that time!! I was so frustrated I walked away and realized this is not the right banking institution for me. I mean, how do investors who are traveling and have properties around the globe with tenants in them show up at the physical property address to close on a HELOC for 2 hours with a notary public. Is this for real? In any case, I need recommendations of investor-friendly banks so I can do this all over again... any guidance is much appreciated!!
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Did you ask why it needed to be at the physical property location? That would seem to make sense for a primary, but not necessarily for an investment property which I know NFCU will do a HELOC on. It's possible they were mistaken about that requirement for your investment property.
Also meeting at the property doesn't mean its a deal killer...simply tell your tenant you need to complete some paperwork and it will be at the property. You plan to meet the person outside and will be completing everything outside, but will only be there for 15 min and not disturb them. Bring a card table and set up in the driveway...
Overall I'm not sure what banking relationship you think you had with NFCU. They aren't a specialty Real Estate investment bank etc, but they are one of the few that offers investment property helocs...so don't cut your nose off to spite your face.