Home Equity Loan on Non-Owner Occupied Rental

7 Replies

My husband and I own three duplexes that we rent out. They are all paid off. We are retired, and the rents are how we derive income. We also own our residence outright. Our credit scores are in the 800 range. Our bank statements show that we bring in a little less than $10,000 a month, but our tax returns show a lot less because of deductions and allowed depreciation.

My question is this: We would like to do some remodeling to our residence and were thinking about taking out a loan on one of our rental properties. The property I had in mind is worth about $630.000 and the amount we would need is about $120,000. Because of this being rental income and our tax returns showing what they do, are our only options private portfolio lenders? I've talked to a couple, and I know that is a possible route, but their rates are a little bit higher than I want to pay if possible.

Any thoughts? Has anyone had a good experience with a bank or credit union with this similar scenario?  Or would we have to take less deductions and beef up our tax returns and then try to get a traditional loan?

My husband says to just wait and we can save up the money, but I sure would like to remodel sooner than later.

@Sheila Mathers I am working with Pen Fed I am in the final leg of closing on a HELOC on my investment property here in NYC, they do HELOCS on 1-4 family investment properties I don't if they have this product throughout in every state but you can call and find out also you have to become a member of pen fed by opening an account with them five dollars or more. You can also try TD Bank. @Kerry Baird posted this list of banks that do HELOCS on investment property. Hope this helps.

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 InsuranceI 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

LawrenceL, thank you so much for taking the time to respond.  My husband is actually a member of PenFed, so I will definitely speak to someone there and see what they have to say!  And I appreciate the other banks/credit unions you listed as well.