Need bank for HELOC on Rental Property

14 Replies

Hi guys,

I am looking to start my BRRRR career by using a HELOC on the first home we purchased and lived in for 1.5 years, but that we have been renting out since February 2018. I have found one major bank that will give us a HELOC on a rental and called ~30 other banks/credit unions in Atlanta, Georgia and none of them would offer the HELOC unless it is a primary residence. Does anyone have any suggestions on banks that will lend on a rental property? Also, should I look for a broker that specializes in BRRRR to help me out?

Thanks for any and all advice!

I've established HELOC on several of my properties recently but both banks I use are regional here. Neither had an issue with it, definitely will need updated appraisal. I may depend on the amount of equity you have, I only did it with properties that I held 100% equity.

Originally posted by @Bobby E. :

PenFed offers a HELOC on rentals up to 80% currently at prime+1. Closing costs paid by bank, may require an appraisal

I was just filling out their online application... they have a question asking if you have lived or plan to live in  the house though. When I checked No it said they couldn't do the loan... have you looked into that? I was thinking of just checking yes then explaining when I was talking to the actual loan officer...

i would call them and ask the question. I had lived in mine as a primary residence but i was under the impression it didnt matter, as long as you are requesting it for a non owner occupied. 

There are plenty of banks out there that do this, you just need to make phone calls until you find one. I highly recommend against doing a cash out refi, it's a much riskier and more expensive strategy (and typically you can't pull as much equity) and there's really no need for it.

I just applied with Pedfed for a heloc on a rental, and everything was going great, until they said they can't do a heloc on a rental that is owned by a LLC. I thought I was home free, getting equity out of a rental, but then shut down. I can quit claim it to myself, but it's in a trust and what a pain to do all that.

Just a heads up on that if you are looking at pedfed and hold it in a LLC. If anyone knows a company that will give a heloc to a rental property in a LLC, please let me know. Sounds like a big ask, but who knows right?