Equity Loans on Investment Properties?

8 Replies

Howdy ~ I've been trying to figure out the best way to access and use the equity from my investment property....I owe $170k and it's assessed at $375k. It's far away from me, so my local bank doesn't want to do it. 

The typical internet search results are frustratingly random regarding the topic.

Are there lenders that even do this now? Or was this just a pre-2008 thing? 

Any advice is appreciated.....Thanks!

(719) 422-3008
Originally posted by @Brandton Manshel :

Howdy ~ I've been trying to figure out the best way to access and use the equity from my investment property....I owe $170k and it's assessed at $375k. It's far away from me, so my local bank doesn't want to do it. 

The typical internet search results are frustratingly random regarding the topic.

Are there lenders that even do this now? Or was this just a pre-2008 thing? 

Any advice is appreciated.....Thanks!

Are you looking for a HELOC or do you want to refinance the entire mortgage and get cash out in hand?

The latter is a simple process but the HELOC method on an investment is difficult.

Yes there are still banks around that will do a line of credit on a rental. I used a small bank in TN to do my refi and did a line of credit . This was in 2015 and again in 2016. 

Andrew Johnson Bank in Cleveland, TN

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TD Bank does a HELOC on an investment property, but the LTV isn’t terrific. Perhaps you can find a local (to the property) credit union that will do the same thing. Otherwise, perhaps you could look into a conventional cash out refinance. I recently refinanced three properties, two were in Florida and one in Texas. We closed at a local (to us) title agency.

@Brandton Manshel Yes it's called a cash out refinance. You would take a loan out for up to the maximum LTV and at closing your loan of 170k will be paid off, and you will receive the difference. If the max LTV is 75%, then you could borrow up to $281,250 ($375,000 x .75 = $281,250). At closing you would receive approximately $111K ($281,250 - $170,000 = $111,250). This will way most likely give you the most favorable fixed rates long term.

@Kerry Baird ,
I've had the same issue trying to pull from equity in an investment property also using a conventional cash out refi. I may give TD bank a call to check their rates. Thanks 

Around here, it is 75% LTV, and it is a loan, not line of credit. which usually isnt the greatest when it comes to rates and terms.

PenFed does 80%. Just did mine only paid $350 for appraisal. Interest only option and 12 year draw period. Appraisal came back 6k under what I estimated, not bad. Only pay for what you use.

And no, I do not work for them. I was in the same situation and most banks will not do helocs on investment properties.

Good luck.

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