HELOC in Georgia for SFR
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.
Thanks
@Brian Gerlach
Thanks for the info Brian!
Originally posted by @Brian G.:
@Manmath D.
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.
Thanks @brian gerlach. I'll give them a call and see what they to offer.
@Manmath D. It’s been very easy working with Pen Fed so far. Every time I’ve called and grilled their customer service reps with questions, they are able to clearly answer them. Tell us how things turn out.
@Brian G. I tried to do the application for the HELOC with PenFed today online, and it says that I either have to have occupied the property previously or plan to occupy it in the future. Which I haven't occupied and don't plan to in the future. Otherwise it won't allow you to continue the application. With your experience with PenFed so far, have you been able to get a HELOC on a purely rental property?
I called every bank I could think of that has a branch in GA large and small and the response was all the same. "We do not have a loan product for a HELOC on investment properties". The only bank I did not call was Wells Fargo since a 60% LTV isn't too useful. Some banks were offering HELOCs on short term investment properties such as Air BnB rentals but not long term rental houses.
@Mark B. sorry I’ve been off the grid lately in a very busy work season. Yes. Give them a call and they will start your app process over the phone. I recently closed on a Heloc with Pen Fed on a rental and we’ve never occupied the property.
@Brian Gerlach thanks for suggesting PenFed. I started the HELOC app over the phone with them in the end of Dec and they have been great to work with so far. The loan processor has been emailing me every couple days with updates on the progress and the only issue that came up she called right away on. Again, thanks for the suggestion!!
PenFed is not in Georgia and won't do loans out-of-state.
Ive' been calling around to small banks in Georgia today and can't find any that do HELOCS on investments...I even lived in mine for 4 years, now it's a (profitable) rental. So I don't want to refi and kill the cash flow. Any luck in Georgia anyone?
I found BB&T in Georgia to do a 80% LTV HELOC in GA on investment properties.
With the merger of Suntrust and BB&T - I heard they were suppose to offer more small business loans. I've never been successsful with the large banks...especially Suntrust, and I had a good sized checking account with them and 10 escrow accounts for 15 years - they have all my activity and still refused to make any line of credit available to my investment company. I also heard the SBA is supposed to work with more small businesses now to keep the economy working. It's worth a shot to see today- since everything is turned upside. I do know the SBA looks to home equity to secure the loans they make- not sure if they will do lines of credit lending vs. standard loans. Most people think the SBA makes loans- they do not. They secure the loan a banks makes - if the person cannot pay back the loan, usually banks are on the hook for 10% of the loan - meaning the bank takes some of the risk - although small.