I got a HELOC on a duplex with Pentagon Federal... according to their website they're offering up to 80% LTV with a 7.24% rate. Used it to help pick up a new SFR rental.
I am trying to find HELOC on a rental property in Houston, TX. I might try credit unions and local community banks. So far I called Chase and they only offer HELOC for personal property. Please let me know if you find something. I will do the same.
Caliber Home Loans did a HELOC lending 70%. Wells Fargo will lend up to 65% i think on rental property. I did a HELOC on a property i own w/ 4 houses and these funds provided the entire downpayment plus gave me extra cash to buy an historic 4-plex in Old Northeast.
I got a HELOC on a duplex with Pentagon Federal... according to their website they're offering up to 80% LTV with a 7.24% rate. Used it to help pick up a new SFR rental.
Old thread I know, but I'm in Florida and I looked into this on Friday at 3 different Credit Unions. At one the proper manager was not available so I won't know the rules until Monday, but the other two both allowed rental properties
I also noticed the rules varied widely. One, Space Coast, didn't seem to have many rules aside from maxing out at 80% and they required an official appraisal at my expense for a HELOC over $100k. He didn't recommend this because I would only be able to pull $108 due to the 80% cap anyway.
The other, Fairwinds, had a $50K max for investment properties and a percentage cap lower than the other that I can't remember (60% maybe?) but the problem was they had complicated rules for doing it that honestly confused me. For example I had to take $15,000 out immediately but could return it in 1 month if I chose (why? I have no idea), and the money had to be paid back in buffalo nickles on the first eve of a waning gibbous or something. At any rate my thinking is if it's that complicated it's probably not the best because who knows what other surprises exist.
Stephen Shelton I looked into this last week and found some info about HELOCs for investment properties on TD Bank’s website. I will be calling them this week for more info.
@stephenshelton @brianknapp
I am looking for a LOC in FL and am having some trouble. If you find someplace that will lend on an investment please share! I look forward to hearing of your success.
I am looking for a LOC in FL and am having some trouble. If you find someplace that will lend on an investment please share! I look forward to hearing of your success.
I ended up going with Space Coast Credit Union and am now deep in the process of getting it. The property has no mortgage, has a Zillow value of $135,000, and I have a 807 FICO score but could only get $74,000
The appraisal will cost roughly $450 and the terms are a fixed 4.50% for 3 years and then a variable 1/4 point below prime after that. They had a similar one with 1.99% fixed for 1 year, but the one I chose seemed safer since I expect to use it for short-term purposes.
Obviously this is on the low side, but my loan originator from my previous properties has a new mortgage product that is designed for property investors where the projected rent is used in calculating your approval.
Details:
* Cited they want 15%-20% down (hence the value in getting the HELOC)
* Distressed properties can be bought but you must put funds into an escrow account for a little more than the expected cost of repairs. So if the house needs a new $10,000 roof you'd have to put $11,500 our so in. HELOC can supply that)
* He ballpark-figured a fixed APR in the upper 5s.
I contacted him to see if it was ok to broadcast his info. He is Nate Morris at Waterstone Mortgage in central Florida.
An amusing sidenote. My prospective HELOC lender is apparently doing a deep dive on my assets, and the lender to one unrelated property has sent me a text, 2 emails, and a voicemail that basically covers to "OMG don't divorce me!" because they think I'm trying to refinance this loan. The other unrelated property I have is like the proverbial honeybadger who doesn't give a *achew* because I haven't heard a peep from them.
The funny thing is that this in no way affects the business I have with them!
Thanks for the information. I met with Navy Federal today and they will do a HELOC on an investment property at 70% LTV or $100k. I have started the process with them so will try to follow up when we close.
I am looking for a LOC in FL and am having some trouble. If you find someplace that will lend on an investment please share! I look forward to hearing of your success.
I ended up going with Space Coast Credit Union and am now deep in the process of getting it. The property has no mortgage, has a Zillow value of $135,000, and I have a 807 FICO score but could only get $74,000
The appraisal will cost roughly $450 and the terms are a fixed 4.50% for 3 years and then a variable 1/4 point below prime after that. They had a similar one with 1.99% fixed for 1 year, but the one I chose seemed safer since I expect to use it for short-term purposes.
Obviously this is on the low side, but my loan originator from my previous properties has a new mortgage product that is designed for property investors where the projected rent is used in calculating your approval.
Details:
* Cited they want 15%-20% down (hence the value in getting the HELOC)
* Distressed properties can be bought but you must put funds into an escrow account for a little more than the expected cost of repairs. So if the house needs a new $10,000 roof you'd have to put $11,500 our so in. HELOC can supply that)
* He ballpark-figured a fixed APR in the upper 5s.
I contacted him to see if it was ok to broadcast his info. He is Nate Morris at Waterstone Mortgage in central Florida.
@Stephen Shelton did you try Suncoast Credit by any chance? I have an account with them that use for savings and just starting my search for a Heloc on my rental property?
@Brent Pearson pen fed is one if the better option for heloc. One thing they don't mention up front is they only will do a heloc of non owner occupied to a max of 3 properties. In other words, if you personally own 4 or more property's they will not do an owner occupied heloc but they will do your primary residents. So some strategy is important, carefully consider which property you use.
I have a HELOC on each of my manufactured home with land rentals. You need to hunt down a local credit union that is willing to think outside the box. That's what I had to do.
For what it's worth, I recently tried to use my HELOC to fund an investment that I backed out of. The minimum monthly payment would have been 1.5%. I found a property that I liked, but I would have needed to use this for the 25% down and keep it long-term and it killed the numbers.
I think a HELOC is great for a distressed property so that you would have the HELOC debt short term and then change to a full standard mortgage one repaired.
I used a HELOC to fund a saltwater pool and landscaping for a historic investment property w/ 4 apts in Old Northeast area of St. Petersburg (right by Coffee Pot Bayou and downtown area) and that upped the rental income significantly. I feel it was well worth the investment of adding a pool and upgrading the curb appeal.