Question about using home equity loans on investments
Hello all!
I wanted to do more with my real estate investing, and I have a significant amount of equity in a home I bought over 10 years ago. I live in there part time due to work, and rent out the other two rooms. I recently purchased another home as primary resident in another city.
I had an initial conversation with a loan officer at a local credit union about getting a HELOC or loan on the first house, and she asked me if I had tenants. When I told her I did, she said that property was ineligible for a home equity loan because it is considered an investment. When I asked her if this policy was specific to their bank, or if it was a law, she said it almost all underwriters will stop the loan.
I've heard many people on BP talk about using refinance and home equity as a source of capital for investment, and it might not have been as easy as I thought. I'm curious to see what your experience has been and how someone can go about getting equity out of an investment property.
Thanks in advance!
TL;DR: Tried to get home equity loan on investment property, was told it's not possible to get home equity loans on investment property.