Rental Property Investor · Buena Vista, CO · Member since 2015 · 101 posts · 47 votes
Having a hard time finding a lender in Denver who can do a HELOC on a non-owner occupied property. The property is located in Commerce City. I have excellent credit. Property is currently worth about $300K, with $75K owed. would love a 70% LTV. Could do cash-out refi but would much prefer to do a HELOC to avoid paying fees on money not used. Any suggestions/referrals would be much appreciated.
@Don Nelson it sounds like you already have some good responses but Bigger Pockets also has state specific forums too. Feel free to post in the Colorado forum if you need more of a local recommendation again. Good luck!
As long as the property is a residential 1-4 unit home 70% should not be a problem. Are you looking for only a home equity line of credit? Or a term loan?
@James R. - Sorry - PenFed? Thanks for the heads up @Andrew Postell. @Marc Dube, definitely want a HELOC to buy/hold for 6 months, then refi into conventional loan...rinse, repeat until I get to 10 properties, then will have to look at other options since Fannie/Freddie won't allow more than 10 in an individual's name.
If you don't meet their government/military membership requirements then you can always make a small donation to their charity to qualify. I have a HELOC with them.
@James R. and any others reading, PenFed has great options (90% LTV on primary, 85% LTV on investment) for HELOCs, but they have a restriction - can't own more than 3 total properties, or you're disqualified. So, great option for your first couple of properties but that's it unfortunately...
Yes, many banks will cap you at 4 properties so it's a good idea to pull the HELOC on one of the first few if you plan on using it multiple times to acquire new property.
@James R. - unfortunately, we bought 4 for cash and now can get the money out without a refi....but other banks will. Do you know of other national lenders like this that don't have that restriction?
@Don Nelson I have 3 investment property HELOCs from Westerra. Been a couple years since the last, but they were the best option when I last checked into it.
thanks @Don Nelson! I was planning to get HELOC on SFR but did not know that banks wont give HELOC if there are 3 or more properties.. Not sure if this is case with every bank or varies from one to another.
Hi Don. Keybank will do a heloan on property that has been purchased with cash. But only on the lower of the appraised value or purchase in the first 6 months of ownership. I can double check on the. Inner of properties owned but I think our max is 6