HELOC non-owner occupied at least 80 LTV?

Question

Hello BP,

Has anyone had any luck lately on the non-owner occupied HELOC that does 80 LTV?

Looking for someone that does have interest only period. Cannot seem to find any with those requirements. Property is located in Washington. Has anyone gone through this recently? What are my landing options?

Melvin List · Answer

There are some products out there that will go to 80 CLTV but pricing will be much better at 75%.

Jay Hurst · Answer

we can go up to 80% on a non-owner line of credit assuming good credit and a min of 75k. BUT, you will be paying a mid double digit rate. So, you need to be sure it makes sense as it does not always do so.

Also, keep in mind, line of credit are for short term cash needs NOT long term for example a down payment on a property you plan on keeping for the long term. In that case you might be better off just doing a first mortgage cash out refi. And if you look at your blended rate between your current first and your new 14%~ second lien that a cash out refi pencil's better for you.

Brittany Minocchi · Answer

HELOAN maybe, not many options for HELOCs on investments but what is available typically maxes out at 70%.

Nghi Le · Answer

I've only done 80% CLTV HELOANs (not HELOCs) on investment properties, but that's not an interest-only loan and usually rates are in the 10's at that high of a leverage.  I've only seen investment HELOCs go up to 70% CLTV.

What are you using the funds for?  If it's down payment towards another property, then a HELOAN is usually better suited than a HELOC.  I only recommend using a HELOC for scenarios where you'd be able to pay it back within a year.

Alternatively, you can just buy another investment property with lower down payment, which is a better interest rate than anything you'll get on a 2nd lien HELOC/HELOAN.  You can buy deals at at 15% down (if it's turnkey) or lower if you're using hard money (for a BRRRR-type scenario).

Chris Seveney · Answer

I am not aware of anyone providing a HELOC up to 80%. Most would probably require you to refinance the first and even then 80% may be a stretch - most I see are 75%. Sorry this is not helpful