Looking for a Helco on my LLC - which owns my rental property.

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Charletta Goodman
Florence, SC · Member since 2018 · 24 posts · 1 vote
2y

@Bhrgu Itwaru Can you share what you ended up doing? Did you find a bank or did you choose a different route?

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  • Ethan Gidcumb
    Lender · San Diego, CA · Member since 2022 · 130 posts · 75 votes
    2y

    Hey Bhrgu, are you familiar with DSCR loans? This could be an alternative method you use if you have trouble getting a HELOC on your property that a lot of investors who use the BRRRR method use. Good luck with your investments!

    0Reply
  • Amber Stout
    Lender · Tampa/Saint Petersburg, FL · Member since 2014 · 356 posts · 148 votes
    2y

    Hi Bhrgu, there are not a lot of lenders/banks that will do a HELOC on an investment property. You can try PenFed -- they had halted lending on investments until 2024 so they may be lending on investments now. https://www.penfed.org/

    You can also do a cash out refinance. Here are some differences between the two to consider: 

    • HELOC: It's a flexible, revolving line of credit, allowing you to borrow as needed and pay interest only on the amount you use. It is going to be a VARIABLE rate and is typically higher than a cash out refinance. Closing costs will be less with this route. 
    • Cash-Out Refinance: This involves replacing your current mortgage with a new one that's larger, allowing you to receive a lump sum of cash. It's a one-time transaction, and you'll have FIXED monthly payments and rate will typically be lower compared to HELOC. It can be beneficial if you want a larger sum upfront or want to consolidate debt. Closing costs will be higher with this route.
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  • Jacob Sherman
    12 Penns Trail Suite 138 Newtown, PA 18940 · Member since 2023 · 1k+ posts · 319 votes
    2y

    there are some 85% CLTV products out there for full doc and bank statement loans

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  • Brittany MinocchiBusiness Member
    Lender · Massillon, OH · Member since 2022 · 1k+ posts · 486 votes
    2y

    Hi Bhrgu, 

    As others have mentioned a refinance may be your best bet if you can't find a lender to do a HELOC. It's tricky to find on a property in an LLC. Have you considered a HELOAN? This is still second position, but will be a lump-sum loan with a fixed rate vs. a line of credit with a variable rate. They have higher rates than if you were to refinance your current mortgage.

    [email protected]330-354-6590
    Brittany Minocchi - Barrett Financial Group, LLC522 Reviews
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  • John K.
    Lender · West Palm Beach, FL · Member since 2017 · 306 posts · 122 votes
    2y

    Hello, as others have stated it will likely not be possible to get a HELOC on a property in an LLC. There are other options to get cash out however, such as a HELOAN or regular cash out refinance. Feel free to reach out with any questions!

    John

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  • Dave Skow
    Lender · Seattle, WA · Member since 2014 · 2k+ posts · 899 votes
    2y

    @Bhrgu Itwaru- most heloc lenders  wont lend on rental  properties and to LLCS .....consider contacting banks / credit unios  for  heloc  options and  also consider  doing a 2st mtg  cash out  refinnace on the  property

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  • Charletta Goodman
    Florence, SC · Member since 2018 · 24 posts · 1 vote
    2y

    @Bhrgu Itwaru Can you share what you ended up doing? Did you find a bank or did you choose a different route?

    1Reply
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