Want a HELOC what is the best Bank?

[Brian Braunhuber]

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

[Aaron Bushell]

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.