Home equity loan on investment properties?

Question

Is it possible to get a HEL OR HELOC on non owner occupied properties?

If so anybody know a bank in Chicago or that funds in IL?

Brie Schmidt · Answer

Wow guys thanks!  I thought it would be impossible but you guys gave me a few good places to start!

Steve Babiak · Answer

I concur with trying Wells Fargo but I believe they only do them if held in your personal name. I could be wrong on that last bit ...

Michael Gilman · Answer

I am in a similar position, having trouble finding a bank that will give good rates on home equity line/loan on an investment property.  Are you getting a home equity line a loan or a cash out mortgage when you employ your  strategy? Can I ask what the  typical terms and rates are? Debating between getting a commercial purchase mortgage or a heloc/loan against a current rental property.

Regards,

Michael

Leonard Zella · Answer

I just visited a Wells Fargo Branch and they do HELOCS on 1-4 family NOO

Bryan L. · Answer

@Brianna S.  - I've done it many, many times.  My basic strategy for obtaining rentals has been to: 1. buy a fixer with a line of credit that I already have, 2. fix it up, 3. get it rented,  4.  then get a loan on the property (HEL as you refer to it) - basically a cash-out refi.

My experience is that this can best be done with small, local banks or credit unions.

Rob K. · Answer

I have gotten these with BOA, Huntington, and Wells Fargo.

I know that BOA will no longer do them. Not sure about the other two, but that's where I would start.

I know that Fifth Third will do them, but only if you have less than four mortgages.