Was recently turned down for an equity loan on a rental property by Wells Fargo. The property is free and clear and cash flowing. I do have ccard debt and that my be the reason. Looking for sources for down payment money so I can move forward. Any suggestions would be greatly appreciated.
They have to give you a written reason for credit denial. See what the reason is first. If it’s something you can control, fix it and move to a different lender. Wells Fargo sucks anyway, your better off in my opinion.
@Trevor Rutherford I never talk to the big national banks. Small community banks can make the decision "in house" and don't need permission from the head office to approve a loan.
PenFed will do HELOCs on investment property... wouldn't waste my time at WF. They might, not sure really, but you're far more likely to get someone to say sure and then not be able to follow through. PenFed at least has a proven track record of doing them...
I'd recommend calling the loan officer you were working with and just asking them why you were turned down. They should tell you. Wells Fargo does these types of loans (I know because I have one through them), so there must be something else (i.e. low credit score, too high DTI ratio, etc) that they don't like. You won't know unless you ask. And I'd figure it out before applying with other lenders because you might run into the same issue elsewhere, in which case you'd just be wasting your time applying elsewhere until you fix what the issue is.