Indianapolis, IN · Member since 2016 · 16 posts · 16 votes
I got Merrill Lynch or Bank of America telling me they will not put a HELOC on a investment property. Anybody know a lender that would allow at least 75% LTV with a line of credit?
If you are already at 75% LTV I would say you are pretty much maxed out. If you are looking for a HELOC in general on an investment property I would think any bank would be interested in your business. Can you explain?
I can share an example from a few recent transactions we had. One house we bought with cash and then rehabbed. We asked our go-to bank (a local credit union) for a line of credit. They sent an independent appraiser out to determine the value and gave us 80% of the value of the property as a secured line of credit at a competitive rate, interest only payments.
Sometimes the banks will require a tenant and lease before they give you a line of credit or offer to refinance, it depends on the bank, your credit and liquidity and probably many other factors.
Investor · Thermopolis, WY · Member since 2012 · 4k+ posts · 4k+ votes
10y
I have received a line of credit from a bank on investment property myself. It was about a point higher than a regular fixed loan but i was OK with that. Keep looking at lenders.
Real Estate Investor · Philadelphia, PA · Member since 2014 · 45 posts · 30 votes
10y
@Wes Brand would have to agree with @Jerry W. and @Lane Kawaoka from my experience, but I'd imagine lending is different in every region. I always opt for the line of credit over the loan. I like the idea of using credit unions and community banks, because we've had approvals in under 2 weeks while some of the bigger banks drag their feet so long it can be over two months to get anything done.
Indianapolis, IN · Member since 2016 · 16 posts · 16 votes
10y
Thanks guys. I only owe like 140k it is probably worth 250k so just wanting to access small amounts of cash for quick flips only. I get 400 plus positive cash flow on this unit and do not want to refi and pull the equity out so I view this as just a tool.
Lender · Bellevue WA & Orange County, CA · Member since 2013 · 2k+ posts · 1k+ votes
10y
Most credit unions will go to 70-80% (most only go to 70% or less) on an investment 1-4 unit property however they may have limits to the amount of financed properties you have on your credit profile.
Local and regional banks I've seen will allow non owner HELOC's as well so you may want to check out these two types of conduits for your HELOC.
The larger national players usually are not fond of HELOC's on non owners, however I've heard wells will go to 60% on non owners at 6% or so but you'll have to check in with each bank.