HELOC options on a rental property with FHA

Member since 2024 · 1 post · 1 vote

Hello all,

I have a 2 unit multi family in Chicago that I purchased around in 2019 with an FHA 3.5% down at $420k as a primary residence during the time I lived in Chicago. I've put a bit of money into the building and it has appreciated quite well. Currently my interest rate is at 3.35%.

Several years ago, I relocated to Florida for work and have been renting out the units. I would like to look at some HELOC options if possible but I was told I would need to refinance the loan to a conventional investment loan and take on a much higher rate, which I have no plans of doing. Are there any options to take a HELOC while maintaining the same loan? Thanks.

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Denver McClurePro Member
Financial Advisor · Flower Mound, TX · Member since 2018 · 659 posts · 479 votes
2y
Hey @Niboom T., we have a lender in our network that just helped a client with a similar situation. Feel free to PM me if you want to chat.
[email protected]
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Austin Steed
Real Estate Agent · Columbus, OH · Member since 2016 · 593 posts · 664 votes
2y
Quote from @Niboom T.:

Hello all,

I have a 2 unit multi family in Chicago that I purchased around in 2019 with an FHA 3.5% down at $420k as a primary residence during the time I lived in Chicago. I've put a bit of money into the building and it has appreciated quite well. Currently my interest rate is at 3.35%.

Several years ago, I relocated to Florida for work and have been renting out the units. I would like to look at some HELOC options if possible but I was told I would need to refinance the loan to a conventional investment loan and take on a much higher rate, which I have no plans of doing. Are there any options to take a HELOC while maintaining the same loan? Thanks.

Wright Pat CU has a heloc that goes up to 100% LTV. I do think that they require you to currently be living in the property though
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Jonathan KlemmBusiness Member
Moderator
Contractor · Chicago, IL · Member since 2016 · 4k+ posts · 2k+ votes
2y
Hey @Niboom T. - If you can "pretend" to still be living in the property as a primary residence that will make getting a Home Equity Line of Credit much easier.
How much equity do you have in the property?

Some banks will give you a HELOC on an investment property, but you will have to put in some work making some calls. I have a list another BP member put together that I'd happily share with you.

You shouldn't have to refi out of FHA to get a HELOC...maybe @Landon Hoon or @Michael Barbari can confirm? If you do, then you are better just taking the cash out from the refi and investing that.
[email protected]
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Paul De Luca
Real Estate Agent · Chicago, IL · Member since 2018 · 1k+ posts · 1k+ votes
2y
Quote from @Niboom T.:

Hello all,

I have a 2 unit multi family in Chicago that I purchased around in 2019 with an FHA 3.5% down at $420k as a primary residence during the time I lived in Chicago. I've put a bit of money into the building and it has appreciated quite well. Currently my interest rate is at 3.35%.

Several years ago, I relocated to Florida for work and have been renting out the units. I would like to look at some HELOC options if possible but I was told I would need to refinance the loan to a conventional investment loan and take on a much higher rate, which I have no plans of doing. Are there any options to take a HELOC while maintaining the same loan? Thanks.

@Zack Karp
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