Want a HELOC what is the best Bank?

24 Replies

Hi all, I wanted to get a HELOC on my rental and wanted to get some recommendations for banks to use.

The rental is in the Portland, OR metro area but I live in the Austin, TX metro now. Should I get a local lender in Oregon or can I use a national lender? 

Thanks

I used umpqua bank in Oregon for my personal residence HELOC. I've had accounts there for 15 years and like them a lot.

Thanks Dustin - I used to bank with them when I lived in Vancouver, WA and will look into them. I just applied for a HELOC on my rental with Wells Fargo, which is who I bank with now, and hope to get a few quotes to compare.

I used Moody Bank for a recent HEL (not HELOC) and dealing with them was a pleasure.

Thanks Stephen I will look into them as well. 

Hi Lusi - I tried lending tree all of the lenders that called me from there could not do a HELOC on a rental.

google, you will find plenty.  Wells Fargo sucks, I bank with them for the last 20 years and just replaced the heloc I had with them with one from a non local credit union.  Higher ltv, lower interest rate.

Thanks Lee - which Credit Union did you use? 

@Brian Braunhuber I'd be curious to know what you find with regards to lenders doing a HELOC on an investment. I've not had any luck finding one that will do it against an investment property.

I concur with those who are suggesting a local credit union.  Most banks/CU's are reticent to lend outside of their "footprint." Finding a local CU will solve that problem for you as long as you can qualify to become a member.  In most cases, this means "I live, work or own property in the area served by the CU."  Your rental should qualify you, but you will want to call and check with them to be sure.  A local CU's familiarity with the local market will make your deal more likely to be approved than for a large national bank and you're less likely to get fee'ed to death.  A quick Google search showed a dozen or more credit unions in the Portland area.  I'd start with "A" and work your way down the list.

You're going to run into hesitance from them on two fronts- first, CU's are designed to be consumer-focused.  Not commercial/rental property-focused.  Make sure you work with a banker who has some experience in this field.  Second, the fact that you're not locally located will be another hurdle to overcome, but if you're persistent and find the right person, you should be fine.  

Lastly, as Kory mentioned above, ALL lenders will cap the amount you can borrow against a rental property. Most in the 60-70% LTV range. Some have gotten more lenient/competitive as the market has improved, but the halcyon days of 100% financing ended in 2008.

Try Key Bank. I think they will go up to either 95% or 100% LTV on primary residences anyway.

Thanks everyone for your responses. I will look at all the banks/CU's and post the  results of my find here for everyone to read. 

First tech is the only bank locally that I know of that does heloc on investment property. 

OK All, I gave most of the banks on the list a call and here is what I found out. 

Wells Fargo (National) - Still waiting on a Responds 

Umpqua Bank (Vancouver, Washington) - No Heloc on Rentals

First Tech (Beaverton, Oregon) - Yes Heloc on Rentals

Contact: Scott Shewbridge 

LTV: 75%

Rate: 5.75%

Moody Bank (Austin, Texas) No Heloc on Rental but will do Home Equity Loan. Also referred me to BBVA Compass.

BBVA Compass (Austin, Texas) - No Heloc but will do a unsecured line of credit. I was told by the person at Compass that HELOC's on investment property was not allowed in Texas.

Contact: Jeremy Oliver 

Rate: 7.5%

Fees: None

Max. Amount: $150,000 

Hope this helps

USAA did a heloc on a rental for me about 6 yrs ago and my current rate is 3.81%. 5 yr draw 15 yr repayment

Digital Federal Credit Union (DCU) will do up to 70% on NOO properties for an Fixed Rate Equity Loan they were having a no closing cost special too. Very easy to work with and quick - less than two weeks. Not sure if there is a limit you can have. I think they said there is no limit. If the property is in their area I also think you can get up to 75%.

BECU - Not sure if it is available in OR will do actually HELOC's fixed or variable 70% on NOO properties you can only have 3 HELOCs total with them. Again easy to work with about 3 weeks to close.

Key Bank does 70% Home Equity Loans on NOO properties but there are closing costs involved which is why we have never used them.

When we contacted USAA they said they would not lend on a NOO. That was a couple months ago.

I also suggest you contact all these people yourself. Overtime you call you get a different answer. When we first called DCU they said they would do 80% then we applied to find out they would only do 70%.

Good luck! We love to know if you do find anyone else though. 

Thanks @Justin Peila - I am looking to get around $35000 line which will put me at 75%. Thanks for your input. 

Both Austin Telco FCU and Randalls Brooks FCU do pretty good HELOCS on owner-occupied. I have not checked on NOO. My only caution is to make sure you speak with someone there who is actually familiar with the product. We had to go back to ATFCU a second time because the first person we spoke with didn't really understand the product and was telling something different than was on the website. We later found out that she was wrong and the website was correct!

We used Pentagon Federal Credit Union on a non owner occupied and they gave us great rates and were super easy to work with. Had to open an account and put $5 in. They gave us 80% LTV at 1% over prime.

Equity Development has a stated income HELOC. Min loan is $250k and it is for properties in California only but the rate is higher than normal bank rates. Last I saw it was around 10.5%. Hope that helps. I am sure regular banks and CU are much lower but will need more documentation

@Brian Braunhuber   Article XVI, Section 50 of the Texas constitution forbids home equity loans and HELOCS on non owner occupied properties (only homesteads are allowed).  I don't think it matters where the bank is.  Your only option is a cash out refinance.

Are you sure about Moody Bank?  Perhaps the person you talked to was inexperienced?  I am also interested in doing this so if you find some way of pulling it off please let me know.

Eric

Hi all, update on my search for a home Equity Line of Credit on my rental that is in Vancouver, Washington.

Well Fargo will do it but only up to 65% LTV, which is not going to work for me.

Update on how my search is going for Creative Financing.  

BBVA Compass (Austin, Texas) - Unsecured line of credit. 

Contact: Jeremy Oliver

Rate: 7.5%

Fees: None

Max. Amount: $150,000 

I just qualified for $10,000 unsecured line of credit with BBVA.  This is not much but could help with paying for the repairs on a project. 

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