Heloc on investment property
I just called 6 banks in WA state to try and get a HELOC on a rental property. The purpose of the HELOC would be used for a partial down payment on another investment property. All 6 said if the intended use is to purchase more real estate they wont lend. Even if the property was owned free and clear they would not lend one dollar against it. I did find a credit union in Oregon that would do it but they don't lend in WA state. If anyone has any ideas that would be great! Thank you.
I would suggest calling 15 more banks. Or find someone in your market that’s done this and ask them how. It only takes 1 yes.
Strange, I guess they would rather you blow it all on a vacation or renovating your house?
Tell the bank the HELOC will be used to make improvements on the residence. I doubt they're going to audit your purchases after you secure the HELOC.
Yeah, definitely keep calling. Or you could use that money to do repairs to the subject house....but then change your mind once the loan has closed
Thanks all! Yeah I just called a small local bank and got encouraging information! That’s the ticket I think just keep calling banks....Only takes one!
@Dave S. They're hard to find but they're out there. And, as you found out, they usually have restrictions on what they'll allow the money to be used for. I have a couple HELOCs on investment properties, and was also told by one lender that they don't allow the HELOC to be used to purchase another property.
Anyway, here's some questions you can ask when calling around to find one that works for you: What You Need to Know When Shopping for a HELOC.
Good luck.
I got one from Union Bank online. Just received a check book for the line yesterday.
Thanks Joe, congrats! I will add Union Bank to my list to call. Appreciate the feedback.
@Dave S. Hi Dave , did you have any luck getting a HELOC on your investment property. I have a couple in GA that I would like to pull equity. Thank you, Linda
Just an FYI, Union bank does do HELOC on rentals, but only Ca, Wa, and Or.
Hi Linda, I did get some traction with Wells Fargo...Looks like folks are having luck with Union Bank as well but I haven't contacted them yet...
Do the HELOC's on investment properties report to personal credit or business credit or is there an option?