Are HELOCs on rental properties a thing of the past?

Question

I've read about them in books but have literally never found a lender who offers one. Any insight?

Lawrence L. · Answer

@Jeremy Durham

I am on the final leg of my process with my HELOC through PenFed. PenFed and TD Bank offer HELOC on 1-4 family rental properties. I wanted to get a refi but my interest rate is 3.5% and if I refi that goes up to 5 or 6%. Now if there is a bank or some one has info of refi rates lower please let me know.

Michael Albaum · Answer

I just opened one about 3 months ago on a SFR that I own as a rental. The lender had no issue with it at all, it was a very simple process.

Evan Greenfield · Answer

Home Equity Lines of Credit are certainly not a thing of the past. They are relatively easy to obtain. I'm located in Jacksonville FL incase anyone could use a local connection. Feel free to send me a PM

Cory K Bente · Answer

@Jeremy Durham Union Bank offers helocs on rental properties. They are currently limited to the West Coast: Washington Oregon California.

Christian Allen · Answer

You can add Signature FCU to that list. They do HELOC and HEL on investment properties up to 75% CLTV. Lend in most states I believe.

Jeremy Durham · Answer

The only one I think I'm eligible to use (remember, I'm in TN) is Wells Fargo, and they only go to 65%. Better than nothing.

PenFed or Navy Federal would work, but I'm not certain I qualify.

US Bank is my normal bank, and they said they didn't offer HELOCs on investment properties.

Kerry Baird · Answer

I have been gathering lenders who will do HELOCs on investment properties. It appears to be one of those "impossible" things in the real estate world, that persistent people do regularly. :D

If anyone else has one to add to my list, please let me know, as my list has been growing recently.

Trustco

US Bank

TD Bank

PenFed (I used this one)

Union Bank, specializes in noo HELOC, Cory K Bente on BP

Utah: Americafirst 80% LTV on noo 65% LTV 15 year 5.74%

80% HE 15 or 10 year 6.49 fixed

First Florida Credit Union (Jacksonville area)

1.99% for 12 months, 5.25% variable 80% CLTV 20 yr w 10 yr draw

Investment property HELOC in Texas from Hurst Lending and Insurance

Cameron Lee Brown · Answer

I’m also on the last leg of my application with PenFed for my SFR. Not many issues so far, but they will only work with you if you have less than 3 total properties.

I called about 20 banks/credit unions and the only two that would do a HELOC on a rental were PenFed and Navy federal.

Lawrence L. · Answer

@Jeremy Durham

Prime 5.5 plus 1equals 6.5% adjustable

Jeremy Durham · Answer

What was your interest rate? Wells Fargo hasn't told me yet. They say they will go up to 65% LTV and closing costs are under $500.

Are HELOCs on rental properties a thing of the past?

Are HELOCs on rental properties a thing of the past?

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