Boca Raton, FL · Member since 2017 · 111 posts · 45 votes
I'm not interested in solely "the best rate" but I'm interested in HELOCs with good features.
For example, some banks/credit unions/etc do 90-95% CLTV HELOCS with a desktop/automated appraisal. (The property is in Palm Beach County, FL, but I will check if they lend in Florida if you give me a name.) I already have a bank that will do 80% on desktop appraisal of $485k, and I could pay more to get a higher appraisal, but a 95% CLTV will get me a $130k HELOC ($70k more) and if its desktop, I don't have to pay for it. Or if you know of a place that pays EVERY fee - including the appraisal.
Also, if you know of a bank that does low minimum monthly payments, usually interest only, or say .5-1% of outstanding balance, as opposed to 1.5%-2%. My 80% HELOC option is interest only.
Lender · CA · Member since 2015 · 9k+ posts · 10k+ votes
6y
HELOC lenders have no federal backing, no Fannie, no FHA, no Freddie. They have to risk balance.
I think you're unlikely to find a HELOC that just mushes together all the (from the bank's POV) high risk & low profit things you like form a bunch of different feature combinations. That would be a really quick way to go out of business.
Like asking for stated income hard money at 5% interest only no appraisal zero points... sure, a HML could do that. And they'd just go out of business by the time their 5th loan closed, no question about it.
Rental Property Investor · NorCal · Member since 2018 · 399 posts · 222 votes
6y
You'll get one, two of those features, maybe, but never all, for all of reasons Chris Mason already stated. I got 90% from PenFed using their desktop appraisal. Paying another several hundred "might" have gotten me another 10-15k higher loan amount. The cost for something uncertain to get so little, while relying close to do it just didnt feel like a worthwhile endeavor.
I also dream of the lender you describe. Then I wake up.
HELOC lenders have no federal backing, no Fannie, no FHA, no Freddie. They have to risk balance.
I think you're unlikely to find a HELOC that just mushes together all the (from the bank's POV) high risk & low profit things you like form a bunch of different feature combinations. That would be a really quick way to go out of business.
Like asking for stated income hard money at 5% interest only no appraisal zero points... sure, a HML could do that. And they'd just go out of business by the time their 5th loan closed, no question about it.
I didn't mean to imply that it would mush all of them together in one, I was just looking to see if there were different HELOCS out there that did one or the other that might fit my situation better, that had at least one of these features.
Originally posted by @David de Luna:
You'll get one, two of those features, maybe, but never all, for all of reasons Chris Mason already stated. I got 90% from PenFed using their desktop appraisal. Paying another several hundred "might" have gotten me another 10-15k higher loan amount. The cost for something uncertain to get so little, while relying close to do it just didnt feel like a worthwhile endeavor.
I also dream of the lender you describe. Then I wake up.
I should have been more clear that it doesn't have to have every one of these features, I'm looking for examples that have one or two of these features, maybe one of them could fit my situation better. As for the appraisal, this is just a weird area that is transitioning from old (60's) to new and the automated appraisal is picking up houses that are listed in as-is, handyman, etc - ie, preflips, along with houses that are well kept, along with houses that have recently been remodeled, and all it can do is "average" the sales price of a 350 and a 650 house whereas a human can differentiate what type of house we have here, so it will definitely increase the HELOC by up to 50k. The question is if it is worth paying $475 to do so or if I can find a 95% CLTV that would do so for free, and by potentially even more (70k+).