Investment Property HELOC

San Luis Obispo, California
Personal Finance
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Investment Property HELOC

Juliet Silver
Real Estate Agent · Miami, FL · Member since 2022 · 4 posts · 5 votes

Hi All, 

I am looking for a great Investment Property HELOC for my San Luis Obispo, CA property. I have had a few recommendations for credit unions in the area with great programs, but because my primary residence is in Florida I do not qualify for membership. Has anyone else run into this issue? Any recommendations for HELOCs that might work and offer a good LTV?

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    • Ko KashiwagiPro Member
      Lender · Los Angeles, CA · Member since 2022 · 967 posts · 445 votes
      2y

      Hi Juliet,

      Most lenders only offer HELOCS on primary residence. There are HELOANs which are second position loans that you can use, typically 30 year fixed. The max LTV usually is 75% on these programs. How much cash are you looking to pull out?

      310-848-9776
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    • Juliet Silver
      OP
      Real Estate Agent · Miami, FL · Member since 2022 · 4 posts · 5 votes
      2y

      I have seen the HELOANS, but do not necessarily want to receive a lump sum check at closing. 

      0Reply
    • Janelle K. Eagle
      Real Estate Agent · Central Coast, CA · Member since 2022 · 110 posts · 58 votes
      2y

      Hi @Juliet Silver! I am a local agent here in SLO and also own an investment property in the area. For the most part, I have been steered towards private or hard money loans rather than traditional lenders. There are a few apparently that are considering opening up their product offerings to include HELOCs on investment properties.  

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    • Account Closed
      CPA · NY · Member since 2023 · 891 posts · 157 votes
      2y

      Consider exploring HELOC options from national banks or online lenders that operate across multiple states. These institutions may have less restrictive membership requirements compared to local credit unions. Look for lenders with competitive interest rates, favorable terms, and a good reputation for customer service.

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

      There are HELOCs for investment properties, but they typically require that the property is titled to an individual and not an entity which is problematic for many investors. LTV is typically limited to around 70% and rates are in the double digits. HELOANs will be a bit more competitive, but they are lump-sum and don't allow for draws.

      [email protected]330-354-6590
      Brittany Minocchi - Barrett Financial Group, LLC522 Reviews
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    • Alex Hunt
      Lender · Member since 2022 · 441 posts · 134 votes
      2y

      What about a 2nd position home equity loan, like a regular cashout refi but you can leave the 1st position alone! Also a 30 year fixed up to 75%CLTV(combined LTV with the 1st)

      Happy to connect on this!

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    • Benjamin Emery
      Member since 2020 · 9 posts · 2 votes
      2y

      @Account Closed: Can you share any lender names? Also have the same question but finidng it difficult to find any lender offering HELOCs on investment properties.  

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    • Brittany MinocchiBusiness Member
      Lender · Massillon, OH · Member since 2022 · 1k+ posts · 486 votes
      2y
      Quote from @Benjamin Emery:

      @Account Closed and @Brittany Minocchi: Can you share any lender names? Also have the same question but finidng it difficult to find any lender offering HELOCs on investment properties.  


       Hey Benjamin - 

      I'm a broker, the lenders I was referencing are wholesale lenders that we broker to.

      [email protected]330-354-6590
      Brittany Minocchi - Barrett Financial Group, LLC522 Reviews
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