Weird ELOC situation Catch-22

2 Replies

I'm trying to get a line of credit on a rental. I borrowed money from a relative to refinance it many years ago so I have a "mortgage" in some sense, but there is no lien filed with the county. 

Most banks don't do equity lines on rentals. I've found a few that do but for whatever reason require that there is a first mortgage in place and don't recognized the agreement I have with my relative. So to put it simply, they won't give me a loan unless there is already another loan. 

They also won't let me do a refinance because, again since there's no lien on it, they think it's a "cash out" refinance and won't do it on a rental property, but they would if it was a second home and not generating any income. 

Can anyone recommend a bank that doesn't have their head up their asses?


Check with local banks, ask to speak with their commercial lending department.  You'll probably have to go through several before you find one that will work with you on this.  I would avoid the "big boys" on this.

FYI, checked with a bunch of local banks. Most won't do it. Wells Fargo and TD Bank will. Wells Fargo actually has decent rates and no closing costs right now.

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