HELOC on condo

Los Angeles County, California
Private Lending & Conventional Mortgage Advice
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HELOC on condo

Haley Brodecki
New to Real Estate · Redondo Beach, CA · Member since 2025 · 2 posts · 0 votes

My primary residence is a condo where there are only 5 units and we all make up our HOA. I was working through the HELOC process since we have quite a lot of equity when I suddenly got denied because 1 of the 5 units is owned by someone who lives overseas and rents out his unit. The bank said they require 90% owner occupancy and since our HOA is only 5 units, we only have 80% of units occupied by owner.
does anyone have any suggestions on any banks or credit unions where this may not be an issue? 

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  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    1y

    Hi Haley, 

    You might want to try a non-qm lender that is okay with this condo ownership structure. If the property is considered non-warrantable, you should still be able to do a standalone 2nd mortgage at 75-80% CLTV on an owner occupied nonqm 2nd mortgage.

    [email protected]818-269-7983
    LuxePrivate Investments LLC 572 Reviews
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  • Stacy RaskinBusiness Member
    Lender · Member since 2022 · 1k+ posts · 510 votes
    1y

    There are HELOC and 2nd loan options that might work for this property. These guidelines vary by lender especially if working with a lender or broker that has non-QM options.

    [email protected]818-770-0340
    Bright Skyline518 Reviews
    WebsiteView Page
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  • Cedric Ferrell
    Member since 2018 · 15 posts · 1 vote
    1y

    @Haley Brodecki

    This is a common challenge with smaller HOAs since many lenders require a high owner-occupancy rate for condo financing. Your best bet is to look for portfolio lenders, local credit unions, or banks that specialize in condo loans, as they may have more flexible requirements. You could also explore HELOANs instead of HELOCs or consider a second mortgage option if refinancing isn’t ideal.

    If you need lender recommendations or help finding the best option, DM me and I’ll point you in the right direction!

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