Max LTV Heloc

30 Replies

On a PRIMARY residence....what is the highest ltv heloc available in the market? Is anyone finding 95%LTV? I've seen several 90 from credit unions, but nothing concrete about 95.

Back in the prior crash days, it was easy to get 100%, and even higher. 

@Rusty Scott :

I asked exact same question to my credit-union and he said best he knows is 90.

However he seemed little liberal on the way of valuation of the house price. 

Can you also please post  best interest-rate you could get for them ?
I was told for 80 and for 90 there are different LTV.

well i haven't actually gotten a quote on them. I've seen prime +0 for 80 ltv to prime +1 for 90 ltv. 

just call around to different banks, its not difficult

Found a credit union called Western (Western.org) that claims they go to 100% cltv. 

I just called and SDFCU will do a 95% LTV HELOC or a 125% HE Loan on the primary residence (5,7 or 10 yr period). Full appraisal for over 50K.

Navy Federal Credit Union has 95% LTV HELOC.

Should one utilize the max LTV if the option is available?

Just got the SDFCU 95% HELOC on a 3 unit blding, it is legit. Appraisal came in a little low, but overall very pleased.

Worst part was I had to physically go to Washington D.C. because an error in their system with my application.

In the end I got a $100,000 line for 10 years at 3.90% (floating rate), cost me $1200 in fees. Plus $300 for the flight from Chicago to D.C.  https://www.sdfcu.org/home-equity-loans

@A.J. D'Asaro , I am assuming you are living in one of the units?  House hacking(?) as 95% at least based off of my research is unheard of, even if owner occupied!  Best I could find is 80% owner occupied.  70% for investment properties.  What happened that you had to fly all the way to D.C. ?Well congrats!  Here's wishing you luck in your future investment ventures!

@tony  

@Tony Wooldridge Yes, it was owner occupied. As far as I've seen SDFCU offers the best deal aside from the military-affiliated credit unions. There are a number of ways to be eligible to join SDFCU. I'm not sure if they lend everywhere, but it worked for me in Chicago. I highly recommend them if you are looking for a HELOC on a primary residence / owner occupied multifamily. Credit unions make their own rules for how they lend, sometimes they offer crazy deals to attract new members (like a 95% HELOC), and the deals are typically better than banks. Also another element is perhaps their lending pool, which is heavily government employees, is less risky. As for why I had to go there, no idea, perhaps that is unofficially how they keep from lending to just anyone. Keep looking, you should easily be able to get 90% on owner occupied with credit unions or smaller community banks.

@Tony Wooldridge

Sound Credit Union (in our state) does HELOCs up to 100% LTV, but that only goes up to $50,000. They also offer a 2.24% rate for a year, although it'll probably jump up afterwards. But unlike SDFCU, it doesn't cost you anything to get the HELOC. So you can just cancel and refinance it with them for a $300 early termination fee or something each year. They also have lower monthly payments than most credit unions I've found (0.75% of the balance each month), which helps with your DTI.

@Nghi Le great one!  Here's another i found-

First Midwest Bank offers 90% LTV fixed-rate Home Equity Loans with 15 year terms at ridiculous rates. I was quoted 4.25% last week, same rate as the conventional 1st mortgage (owner-occupied 4-unit). If you live in Chicago area or Midwest def. check it out.

@Nghi Le thanks! I will keep that one in the mental Rolodex! Here is to wishing you success in your 2017 REI ventures!

@A.J. D'Asaro appreciate the clarification. How is your 2017 REI going? I hope well. Thanks again for the the Intel. Here is to wishing you success in your 2017 REI ventures!



Originally posted by @A.J. D'Asaro :

@tony  

@Tony Wooldridge Yes, it was owner occupied. As far as I've seen SDFCU offers the best deal aside from the military-affiliated credit unions. There are a number of ways to be eligible to join SDFCU. I'm not sure if they lend everywhere, but it worked for me in Chicago. I highly recommend them if you are looking for a HELOC on a primary residence / owner occupied multifamily. Credit unions make their own rules for how they lend, sometimes they offer crazy deals to attract new members (like a 95% HELOC), and the deals are typically better than banks. Also another element is perhaps their lending pool, which is heavily government employees, is less risky. As for why I had to go there, no idea, perhaps that is unofficially how they keep from lending to just anyone. Keep looking, you should easily be able to get 90% on owner occupied with credit unions or smaller community banks.

What was the max heloc at the 95% LTV?

@Gonzalo Escobar  

I don't know the limits, but from personal experience, SDFCU's 95% HELOC will lend at least $125,000.,

Ha! I am 0 for 2...tried calling SDFCU and the only state they cannot do a HELOC is Texas. Yay me! I also called Sound Credit Union and it's Washington state only (didn't notice that on the earlier post). Anyone have a recommendation for Texas?

Well after tireless efforts of dialing for dollars, it appears Texas is capped at 80% CLTV. See....not everything is bigger in Texas! So now that I have conceded to this I just need to narrow it down to the right credit union based on fees vs interest rate. Right now I am seeing ranges from 3.5% variable rate and 3% closing costs to 5% and no closing costs.

I applied to this HELOC offer at Andrews Federal Credit Union:

Home Equity Line of Credit

Choose a Home Equity Line of Credit for greater flexibility with easy access to funds on an ongoing basis. Qualify today and enjoy:

  • Introductory rate of 1.90% APR for the first 6 months
  • Variable rates as low as 3.75% APR after the introductory period
  • Borrow up to 95% of your home’s value
  • Interest-only payments during the draw period (minimum of $10,000)
  • Credit Lines $10,000 - $350,000

The offer looks good but the process is slow and painful.

@A.J. D'Asaro - how long did it take you to close your HELOC with SDFCU, from application to getting fully approved? Were the requirements / paperwork required more tedious than applying for a conventional loan?

@cliff tsang - A month and a half, but I had an issue that I dont think is typical, 30 days is probably normal. It's about the same as a conventional loan, includes an appraisal.

Originally posted by @Tony Castronovo :

Well after tireless efforts of dialing for dollars, it appears Texas is capped at 80% CLTV. See....not everything is bigger in Texas! So now that I have conceded to this I just need to narrow it down to the right credit union based on fees vs interest rate. Right now I am seeing ranges from 3.5% variable rate and 3% closing costs to 5% and no closing costs.

 And it just changed this year from 50%. I know, I just closed one last week.

I joined up to add to this thread.  Thanks for the information provided so far!

One credit union to look at is Transportation Fed CU (transfcu.org).  They offer 2nd mortgages up to 100% TLV on amounts up to $250K.  I've been with them for 4.5 years and they are great to work with.  Max term is 15 years.

I'm on the hunt for a similar product but with a 20 year max term.

Good luck

@A.J. D'Asaro - sorry for the n00b question, but how do you typically transfer funds into SDFCU to pay off your HELOC? The current restriction is $2000 per day when transferring from my other checking account. Seems a bit inefficient if I've drawn $20k+

Is the only way to wire funds into SDFCU? I'm trying to avoid paying the fee from my other financial institution.

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