HELOC / LOC on non owner occupied rental properties

7 Replies

Hi all,

I am looking to get a line of credit on three of my rental properties that I own free and clear.  I was wondering if anyone knows a bank or credit union that offers a line of credit product on investment properties.  

I did some research on the forum. It looks like PenFed offers HELOC on investment properties. However, they only lend to people who have 4 properties or less. I currently have more properties than the threshold and wont qualify. Also, I am just looking for a

line of credit at the moment.  So refinance and term loan are not ideal products for me at the moment.

Wells Fargo and Union Bank will do them, but only up to 60% and 65% respectively.

You'll probably just have to call around until you find a lender that will work for you.  Here's some questions you can ask when calling around: What You Need to Know When Shopping for a HELOC.

Try Joe fijalkowski at univest bank. If he’s licensed in Ny he can do it.

@Max T. Thanks for the suggestion. Univest does do LOC on investment properties and they do it up to 75% LTV. The bank actually has branches pretty close to my properties.

Thanks again!

@Kyle J. thanks for the link.  There are a lot of useful information in there!

@James Zhang no problem. I have 2 lines opened with Joe/Univest. Fairly straightforward process like a conventional application. When I did mine I got the closing costs waived by taking a 25k draw at settlement (I paid it back 1 month later). Spent under $150 in interest to save around $400 in closing costs.

@Max T.   That's great to know!  Maybe I will get my next long-term financing with them.  Also, they do desktop appraisals, which saved me ~$500 in appraisal fee.  The total fee comes out to $250.  Pretty good for a line of credit.

I've had the most success by just driving bank to bank and talking to each manager or loan officer. Many have the same guidelines, but I've gone into local banks that will lend as high as 85% LTV once the property has been owned a year, and 85% of purchase price+improvements for anything less than a year. Most guidelines seem to be universal but sometimes its just the bank and the personality of the officer.

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