HELOCs for Investment Property

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HELOCs for Investment Property

Brendan Canning
Investor · Wallingford, CT · Member since 2016 · 21 posts · 7 votes

Hi Everyone - New member here. Any good places to get a HELOC on a multi-family house that I have? We have a significant amount of equity in the property and would like to use the equity for a down payment on another property. Thoughts? Thanks ahead of time!

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Eric Campbell
Investor · Hickory, NC · Member since 2015 · 35 posts · 11 votes
10y

I just got a HELOC through Penfed (Pentagon Federal CU) on a rental of mine. They'll do up to 80% LTV on a non-owner occupied. Pretty painless actually. They actually declined me at first, but I received a call the next day saying that they could do it. I guess they have a human look over every "decline" the computer does, and mine made sense to do. I know my DTI is high due to having several mortgages, but they worked with me and got it done.

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  • Curt DavisBusiness Member
    Flipper/Rehabber · Memphis, TN · Member since 2008 · 5k+ posts · 2k+ votes
    10y

    You might have to refi and pull the cash out as many lenders wont do a HELOC if its an investment property.

    Good luck

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    2Reply
  • Jordan Hanson
    Investor · Mitchell, SD · Member since 2016 · 2 posts · 7 votes
    10y

    I just purchased a duplex for $40k with a heloc. Once the equity was in my account I was able to do whatever I wanted with no questions asked. I'm not sure how other banks handle that but mine allowed me to do whatever I wanted. 

    1Reply
  • Thomas Skuba
    Title Representative · Bristol, RI · Member since 2016 · 11 posts · 4 votes
    10y
    Go to a local credit union. That's where I got my HELOC on my investment property, with a better rate and terms than I could get at my bank.
    2Reply
  • Courtney W.
    Real Estate Agent · Inglewood, CA · Member since 2012 · 8 posts · 2 votes
    10y

    Hi Brendan, 

    Yes. There are very few banks that do investment property HELOCs. However, there are a few out there, Union Bank (based in CA) being one of them. I just finished going through the process with them, and was recently approved. 

    2Reply
  • Paul DefnginPro Member
    Lender · Rockville, MD · Member since 2008 · 498 posts · 199 votes
    10y
    Brendan Canning check out TD Bank. They normally will go up to I believe 70% to 75% CLTV.
    1Reply
  • Brendan Canning
    OP
    Investor · Wallingford, CT · Member since 2016 · 21 posts · 7 votes
    10y

    Thanks everyone!  I see that TD Bank does offer a product so I will check them out. Also will investigate more credit unions.

    0Reply
  • Adam Gagne
    Houston, TX · Member since 2016 · 10 posts · 3 votes
    10y

    When you apply for the HELOC you do not need to tell them that it is for investment property. After you are approved, you can do whatever you want with the money. It's your money.

    1Reply
  • Eric Campbell
    Investor · Hickory, NC · Member since 2015 · 35 posts · 11 votes
    10y

    I just got a HELOC through Penfed (Pentagon Federal CU) on a rental of mine. They'll do up to 80% LTV on a non-owner occupied. Pretty painless actually. They actually declined me at first, but I received a call the next day saying that they could do it. I guess they have a human look over every "decline" the computer does, and mine made sense to do. I know my DTI is high due to having several mortgages, but they worked with me and got it done.

    4Reply
  • Rudy Jauregui
    Downey, CA · Member since 2016 · 7 posts · 2 votes
    10y
    Originally posted by @Courtney W.:

    Hi Brendan, 

    Yes. There are very few banks that do investment property HELOCs. However, there are a few out there, Union Bank (based in CA) being one of them. I just finished going through the process with them, and was recently approved. 

     Hi Courtney, 

    Can you message me the name and number of the person who assisted you with your HELOC? I myself am looking to obtain a LOC on my investment property in Los Angeles.

    0Reply
  • Rosston Smith
    Investor · Warner Robins, GA · Member since 2015 · 1k+ posts · 490 votes
    10y

    Speak with your local credit union or bank.

    0Reply
  • Alex J.
    Investor · Tarzana CA and Houston, TX · Member since 2015 · 326 posts · 130 votes
    10y

    at one point wells fargo offered this product but that might have been a fake account :P

    1Reply
  • Courtney W.
    Real Estate Agent · Inglewood, CA · Member since 2012 · 8 posts · 2 votes
    10y

    @Rudy Jauregui Sure just send me a pm. 

    0Reply
  • Sim Kelly
    Granite Falls, NC · Member since 2017 · 7 posts · 3 votes
    8y

    My first post on BP.  I'm wanting to use a heloc for the down payment to purchase our first investment property.  After say the first year, what is the best way to pay off the heloc so I can use it towards another property's down payment?  We would like to start buying 1 every 2 years or so.  Depending on conditions of coarse. Is this a good way to get started?  Thank you.

    0Reply
  • Bryan Cork
    Colorado Springs, CO · Member since 2017 · 117 posts · 45 votes
    8y
    Brendan Canning I can second the suggestion for PenFed credit union, I just got approved for a HELOC on a SFR that I own.
    0Reply
  • Lana Lee
    Philadelphia, PA · Member since 2017 · 364 posts · 109 votes
    8y
    Originally posted by @Bryan Cork:

    Brendan Canning
    I can second the suggestion for PenFed credit union, I just got approved for a HELOC on a SFR that I own.

    Do you have to be a member of that CU in order to get a HELOC with them?

    0Reply
  • Bryan Cork
    Colorado Springs, CO · Member since 2017 · 117 posts · 45 votes
    8y
    Lana Lee Yes but the requirements for membership are pretty silly. I just had to have previously given blood to the Red Cross 😁. And open an account with a $5 minimum balance......
    0Reply
  • Lana Lee
    Philadelphia, PA · Member since 2017 · 364 posts · 109 votes
    8y
    Originally posted by @Bryan Cork:

    Lana Lee
    Yes but the requirements for membership are pretty silly. I just had to have previously given blood to the Red Cross 😁. And open an account with a $5 minimum balance......

     Ok that's good. I just have to find out if they serve Philadelphia area.

    0Reply
  • Mike B.
    Flipper/Rehabber · Yardley, PA · Member since 2015 · 451 posts · 307 votes
    8y
    Bryan Cork what LTV did they lend to you? 75/25 standard terms or?? I have a SFH rental I’m thinking of doing heloc on as well. Thanks
    0Reply
  • Max T.
    Investor · Philadelphia, PA · Member since 2015 · 3k+ posts · 3k+ votes
    8y

    Call Joe Fijalkowski at Univest Bank. He can do HELOC on investment properties in PA and maybe other states.

    0Reply
  • Brendan Canning
    OP
    Investor · Wallingford, CT · Member since 2016 · 21 posts · 7 votes
    8y

    Here is the penfed link with more information: https://www.penfed.org/home-equity-center

    0Reply
  • Bryan Cork
    Colorado Springs, CO · Member since 2017 · 117 posts · 45 votes
    8y
    Mike B. It’s %80 ltv I believe. Good luck 👍🏼
    0Reply
  • Brittney N.
    North America · Member since 2018 · 14 posts · 3 votes
    8y

    Does PenFed require appraisal?

    0Reply
  • Brendan Canning
    OP
    Investor · Wallingford, CT · Member since 2016 · 21 posts · 7 votes
    8y

    Yes, Penfed requires an appraisal.

    0Reply
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