Rental Property Investor · Saint Paul, MN · Member since 2017 · 27 posts · 2 votes
Hello all
I purchased a single family rental property in Forest Park, GA 2 years ago with 20% down. Recently I've been looking around on the web and the approximate value of the home has increased by about 10K. With that in mind I am interested in opening a HELOC on that property. Does anyone in the Atlanta area or GA as a whole know of a local bank that works well with investors? Or a national bank for that matter? Reading through the forums it sounds like most banks will not go above 70 or 80% LTV for an investment property HELOC, but I'm curious if anyone has had a different experience? Any help/insight is greatly appreciated.
If you have 3 properties or less including your primary Pen Fed will do up to 80%LTV on each. If you have 4 properties including a primary they will ONLY do a Heloc on your primary. On a rental property it is 12 year draw, variable Prime + 1%, I/O or P/I your choice, no closing costs unless a site visit appraisal is required.
I believe that Suntrust Bank will go up to 90% LTV for qualified customers, and pay closing costs as long as their is an initial draw (immediate use) of 25k. They have very competitive HELOC's, so I'd recommend reaching out to them.
@Justin Kane I'm curious if you have had experience using either a HELOC or a cash out refi. It seems like on the podcast they talk a lot about using the cash out refi, but personally I feel like the HELOC is a much better option, as long as the interest rate is reasonable. Am I seeing it wrong?
HELOC can definitely be useful, but if you can just as easily cashout i would do that instead, but if credit or DTI limitations are in your near future you may want to try and get BLOCs instead like with fund and grow
@Seth M. Jones Have you used Suntrust for a HELOC on an investment property? According to there website, they only do heloc on owner occupied homes.
Apologies Mark, I was missed that the particular property that you were looking into was for an investment. You're not going to be able to get higher than 80% LTV on an investment HELOC, but TD Bank is known to handle investor HELOCs pretty well.
I've a property in WV and it is financed through suntrust. 3 yrs ago I reached out to Suntrust bank to open HELOC and was told they wouldn't do it. To get HELOC do you have to find a bank from the state ur property is located or can any national bank do it ?
I moved to WA 2 yrs ago and I just bought a duplex 6 months ago. I'm looking at getting a HELOC on WV property soon.
If you have 3 properties or less including your primary Pen Fed will do up to 80%LTV on each. If you have 4 properties including a primary they will ONLY do a Heloc on your primary. On a rental property it is 12 year draw, variable Prime + 1%, I/O or P/I your choice, no closing costs unless a site visit appraisal is required.
Hey Mark I was wondering if you reached out to any banks about a HELOC?
I'm in the same situation here in GA. I'd rather do a HELOC instead of a cash out refi so I'm not paying interest on the money when its not in use, plus I would lose the great interest rate on my loan that's already in place. I'll probably reach out to a few banks this week and see who would be willing to do a HELOC
I haven’t had the opportunity to directly speak with anyone yet, only been researching online so far. If you do happen to find a bank that allows a heloc in that 80/90 ltv range I’d love to know!