HELOC without the 6 month seasoning requirements

HELOC without the 6 month seasoning requirements

Ted DeKowzanPro Member
Investor · Golden, CO · Member since 2013 · 37 posts · 4 votes

Hello BP, Hopefully you can help with this one.

I recently purchased a new primary residence. It was part of a negotiated sale and I got a smokin deal. Since the sale I've moved quick and remodeled and improved the whole property. In doing so I was able build in a lot more equity. As many of us do, I use the equity in my primary residence to assist in cash flow with other investment activities. I'm running into a hurdle with the typical 6 month seasoning requirements to access the full equity amount with a HELOC or cash out second. I'm curious if anyone knows of a lender that operates in Colorado that does not require a seasoning period and will go head and provided a HELOC or Second Mortgage based on the newly appraised value and not the purchase price. With the possible interest rate increases this year I would really prefer not to wait 6 months to get this done. Looking forward to any assistance or contacts.

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  • Lender · Denver, CO · Member since 2009 · 1k+ posts · 597 votes
    9y

    Try Key bank - I have a contact in Golden if you want to shoot me a note.

  • Bill S.Pro Member
    Moderator
    Rental Property Investor · Denver, CO · Member since 2013 · 4k+ posts · 2k+ votes
    9y

    @Ted DeKowzan Where have you looked? Westerra Credit union has some easy underwriting requirements for loans under $100k perhaps they can help.

  • Ted DeKowzanPro Member
    OP
    Investor · Golden, CO · Member since 2013 · 37 posts · 4 votes
    9y

    Thanks Travis and Bill. I've already reached out to Key bank and Westerra. Unfortunately they will only lend on the purchase price prior to 6 months after closing. The hunt continues.

    https://www.biggerpockets.com/users/BillS_r

    https://www.biggerpockets.com/users/TravisSperr

  • Investor · Pinedale, WY · Member since 2014 · 14 posts · 2 votes
    9y
    Try First Federal Bank & Trust in Sheridan WY. They overlooked the 6 month rule for us, then gave us a cash out refi based on a new appraisal.
  • Real Estate Broker · Seattle, WA · Member since 2014 · 1k+ posts · 427 votes
    9y

    I am also looking for something like this. A local credit union here in Seattle offers up to 90% LTV but they also have a seasoning requirement. :(

  • Louisville, KY · Member since 2017 · 44 posts · 23 votes
    9y

    @Ted DeKowzan Check out Bellco Credit Union. I am in the middle of the HELOC process with them right now. I'm not sure about 6 months, but my wife and I have been in our home for less than a year.

  • Chula Vista, CA · Member since 2019 · 19 posts · 7 votes
    5y

    Hey Ted DeKowzan! I am in the same situation now, how did it turn out? Were you able get past the six month seasoning period?

  • Lender · Phoenix, AZ · Member since 2018 · 440 posts · 256 votes
    5y

    Hey @Jake Vayda The Life Changer Loan is a first position HELOC that goes up to 90% LTV, with no seasoning required. Value is based off appraisal. That being the case, it's popular for people who found a gem of a deal, and quick Renos. It's an incredible tool.

  • Member since 2021 · 8 posts · 1 vote
    4y
    Quote from @Justin Phillips:

    Hey @Jake Vayda The Life Changer Loan is a first position HELOC that goes up to 90% LTV, with no seasoning required. Value is based off appraisal. That being the case, it's popular for people who found a gem of a deal, and quick Renos. It's an incredible tool.


     Do you work with a specific lender? I am in a similar situation and looking for exactly the tool you are referring to.

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