HELOC up to 90% LTV in Texas

10 Replies

Recent Bigger Pockets episode motivated me to reach out to US Bank about their mortgages and loan products. I found out that they are one of the few banks that will do 90% LTV on HELOCS. Most I usually see is 75-80%. Problem is they won't lend in Texas. Has anyone found a lender who will do a HELOC up to 90% LTV in Texas?

(If not, and you live in a state other than Texas, reach out to US Bank and leverage your house and borrow at 5%, can't find money that cheap anywhere, and that's not a plug, just wish someone would have let me know that when I resided in states other than Texas!) 

@Casey Gregersen . As I recall a change to the Texas HELOC law now allows you to borrow up to 80% of your equity in a PERSONAL Residence in Texas. This is up from 50% of the Equity in a PERSONAL Residence before the amended Texas HELOC law.

Also, don't think you can do any HELOC on an Investment Property in Texas.

@Casey Gregersen I've been searching for HELOCs on my Houston properties as well, and am currently working with PenFed. You have to join the credit union, but so far they are allowing HELOCs on 3 investment properties that I have to move title from my LLC to my personal name, then will move back to LLC after closing. They will only lend 75% LTV though...and will only allow you to have max three properties. I have 7 others in my LLC and they were fine with that, as long as the property titles were in LLC. The maximum they will lend on all HELOCs combined is $400K. Weird rules but every bank and credit union has their own rules/guidelines. @Jim Cummings is right, the TX laws have changed and don't appear to be favorable for investors looking to do multiple HELOCs on investment properties.

I'm not approved yet (only started the process) but I will get 75% LTV at 6% for 12 years on all three HELOCs. Plan to pay them off before year 12.

@Bret Faszholz . RE - Your Statement on PenFed HELOC loans.

I'm certainly not an attorney, so not up to speed on all things legal, but in my small brain way of thinking, if HELOC loans are not allowed on Investment Properties in Texas (by Texas Law), I find it difficult to believe PenFed is doing HELOC loans in Texas on Investment Properties. Maybe, it's another loan product (Cash Out Refi),, or it might be the last minute closing surprise - we just found out we can't do this type of loan in Texas!

@Jim Cummings hmmm...interesting. I spent quite a bit of time with various reps at PenFed and they all agreed, max is three investment properties they will allow HELOCs. They seemed to be aware of and knowledgeable of Texas laws.  But you're right, I could have a 'bad' closing surprise ahead and this could fall apart. Will keep you posted.

My last resort is to do cash out refi's which I've done before on TX properties, but wanted to try HELOCs this time instead.

@Jim Cummings update...it's a no go with PenFed. They would only allow a HELOC on one investment property, and they require it to be homestead exempt which you can't do on investment property, so it's a no. At least I found out now before I got too far down a path with them. They will only do a simple refi on any investment property (max 3 properties) and will not let you pull any cash out...period. PenFed is not a friend to Texas investors. The search continues...

Originally posted by @Bret Faszholz :

@Jim Cummings update...it's a no go with PenFed. They would only allow a HELOC on one investment property, and they require it to be homestead exempt which you can't do on investment property, so it's a no. At least I found out now before I got too far down a path with them. They will only do a simple refi on any investment property (max 3 properties) and will not let you pull any cash out...period. PenFed is not a friend to Texas investors. The search continues...

I just called PenFed about their 10 year balloon loan on investment houses and was told it would not be possible in TX, but the agent suggested HELOC. I was surprised and told him that the last time I looked Penfed would not give it on rentals. He said things have changed and when I researched I see some references on Penfed's website. Also there were some HELOC changes in Prop 2 in the Nov 2017 vote.

Who did you end going with?