Rental Property Investor · Melbourne, FL · Member since 2011 · 3k+ posts · 2k+ votes
6y
Ridge Lending All in One, first position HELOC Americafirst 80% LTV on noo 65% LTV 15 year 5.74%, Utah Arvest Bank California: Cal Coast Credit Union and Fremont Bank. East West Bank, up to 60% LTV with "no docs” First Florida Credit Unionhttps://firstflorida.cumortgagecenter.com Huntington Hurst Lending and Insurance Investment property HELOC in Texas. No seasoning. Key Bank, flexible lender, HELOCs on second homes and rental properties. 90% LTV on primary. PenFed LendingTree is a broker, connects you with multiple loan providers, some sub prime. 3 to 5 week for underwriting is a long time. TD Bank Tower FCU, all states except TX, max 45 DTI, green card ok. Max of three rental properties. Automated appraisal, not full. Trustco Union Bank, specializes in noo HELOC US Bank Figure
Rental Property Investor · Melbourne, FL · Member since 2011 · 3k+ posts · 2k+ votes
6y
@James Edwards
On my primary, though PenFed will also work on investment properties. Based upon appraised value, not drive by or desktop underwriting. Very pleased with the product. These are not quick...Same month or so, as regular mortgage.
Kansas City, MO · Member since 2018 · 91 posts · 30 votes
6y
I spoke with PenFed, and they will not do a HELOC on an investment property; only your primary. I did find a lender who would lend a HELOC on an investment property if it was a single family style property. No multifamily properties.
Rental Property Investor · Melbourne, FL · Member since 2011 · 3k+ posts · 2k+ votes
6y
Ridge Lending All in One, first position HELOC Americafirst 80% LTV on noo 65% LTV 15 year 5.74%, Utah Arvest Bank California: Cal Coast Credit Union and Fremont Bank. East West Bank, up to 60% LTV with "no docs” First Florida Credit Unionhttps://firstflorida.cumortgagecenter.com Huntington Hurst Lending and Insurance Investment property HELOC in Texas. No seasoning. Key Bank, flexible lender, HELOCs on second homes and rental properties. 90% LTV on primary. PenFed LendingTree is a broker, connects you with multiple loan providers, some sub prime. 3 to 5 week for underwriting is a long time. TD Bank Tower FCU, all states except TX, max 45 DTI, green card ok. Max of three rental properties. Automated appraisal, not full. Trustco Union Bank, specializes in noo HELOC US Bank Figure
Rental Property Investor · San Angelo, TX · Member since 2013 · 104 posts · 27 votes
6y
I became a PENFED member to obtain a HELOC, however after inquiring more they don't do the investment and they also have a limit to the number of properties you can own. I think the agent said 4 properties. The agent told me this is Fannie/Freddie rule, but doesn't sound right to me.
Rental Property Investor · Los Angeles, CA · Member since 2013 · 1k+ posts · 1k+ votes
6y
@James Edwards yep. You must have 3 properties or less including a primary and own the investment in your name (ie not an LLC) to get a Heloc on a rental through Pen Fed. Variable rate tied to Prime + 1%, 80%LTV, 12 year draw, you choose P/I or IO payments.
On my primary, though PenFed will also work on investment properties. Based upon appraised value, not drive by or desktop underwriting. Very pleased with the product. These are not quick...Same month or so, as regular mortgage.
any out of pocket costs, fees? interest only? interested...what type did you get terms? any info is appreciated
Late reply, but I am in the process of getting a HELOC on an investment property. The only listed cost is $455 for the taxes associated with recording the Deed of Trust/Mortgage instrument in the county records.
I just got messed over by them as of yesterday. Just over a month ago I applied after talking to their loan office. I have a rental about two blocks away from my primary home. Their site says they can do non-owner occupied in Tx but at a lower LTV. The loan officer said my whole setup was fine = I own four properties in all, one of which I live in and, of course, homestead at my primary.
2 weeks later I finally get an email from the loan processor that says I cannot do a heloc for loan property in Texas due to that 50(a)6 clause. I read it, quoted it in a reply email showing that that law only protects your homestead, not your rentals. I also quote their own site saying "non-owner occupied" and a "lower LTV in Texas". Processsor didn't agree but said they would give to underwriter but now I need to provide more information than the site, the loan officer and the processor herself said.
More confusing emails came from processor with no real answers to the homestead-heloc question.
Then I get a call yesterday morning saying that I own 4 properties and that was one too many for PenFed. That's not written anywhere (site, application, other documents given to me). I told them one was sub-to and will come due in two months so the deed isn't in my name.
2 hours later I get an email from the processor saying those facts didn't help me with anything and I was declined. "Have an awesome day!"
ugh
Well I've heard good and bad about PenFed. I still don't know if they'll do rental property lines that do or do not have a homestead. I could have been told something over a month ago before my credit was pulled and tons of personal information given to them. And now I've got to start the process over again somewhere. Not sure where. I need to close the account PenFed required me to open with them. And I've lost money because I was going to move some equity around during this, but put it all on hold pending this answer.
So I'm typing all this hoping it helps one of you. I know some folks have gotten their helocs here but I don't know their setup. I'm new to BRRRR and wanted to do so with my own line of credit. I saw here some folks got it and some didn't. I thought my story above would help clarify.
HELOCs on rental property in Texas is a NO GO. primary residence only regardless of what Pen Fed may have on website.
I have read from many people on this board and others that have successfully acquired a heloc on a rental in Texas using PenFed and other small institutions. Before COVID, Wells Fargo was able to do it but not at great terms, as does/did Cendera and a couple of other I contacted in the past. (The terms weren't a match as was PenFed's, so I didn't pursue.)
From what I see, the law that everyone quotes [50(a)(6)] does not mention investment or secondary property, but I'm no lawyer. The law appears to only protect homestead (primary) homes only. It even allows the lender to keep the LOC in place if the property was homesteaded, but ceases to be.
Residential Real Estate Broker · College Station, TX · Member since 2013 · 1k+ posts · 969 votes
6y
@Bryan Garner. said: "From what I see, the law that everyone quotes [50(a)(6)] does not mention investment or secondary property, but I'm no lawyer."
If you've read the law - you're ahead of most of the crowd, including me! My understanding us from osmosis and word of mouth. Let's see if we can get some of the legal eagles, @Jerel Ehlert & @Jamie Jatzlau to chime in with a better interpretation of the statute from their perspective.
Rental Property Investor · Lansing, MI · Member since 2017 · 58 posts · 18 votes
6y
Lots of conflicting information on this thread compared to what we have been told by PenFed over the last few months.
Recently their customer service has fallen off. Days pass before phone calls are returned. Their failure to process a HELOC in a timely manner is about to cost us a deal. We applied months ago and to get everything lined up and ready for when we wanted to pull the trigger. Then it was "go time" and they became unresponsive. Credit, LTV, income, etc...are all fine, so it isn't an issue there. Like I said, this was all pre-approved. Not too happy...
Rental Property Investor · Jacksonville, FL · Member since 2008 · 784 posts · 528 votes
6y
I've worked with big banks before and bad customer service, Penfed might as well be Wells Fargo or Bank America. They have terrible customer service at Penfed. Terrible technology and idiots who cannot speak. Your first line in any company are the people, so why not get them the best and do what is needed to close more business?
Worst experience that reminded me of the 2008/2009 crash with banks. Terrible customer service. Go elsewhere.
Rental Property Investor · Lansing, MI · Member since 2017 · 58 posts · 18 votes
6y
Just to add onto my post from a couple months back. We have now closed on the HELOC and all I can say is that it was a terrible experience.
Our closing was delayed almost 3 weeks - entirely there fault
Multiple times we called to check on the status since we had not heard from them for days, only to be told they were waiting on us for XYZ document. We would then re-forward the email from when we originally (sometimes twice) sent them the document days or weeks ago. Sometimes they would find it "misplaced" in the system.
We were given a date and time for closing, then the day before they contacted us to "setup closing". What? We already have an appointment?!? Apparently it haven't even cleared the under writer yet. How is that possible? Closing was pushed out several more days.
The day of closing they messed up the deposit instructions which delayed the transfer to our bank.
We were told that they were swamped because of short staffing due to COVID. Fine. Maybe you shouldn't take on that much new business then? Maybe you just don't promise dates you can't make? Had they told us the actual time frame (accurately) to begin with, it wouldn't have cause so much frustration.
Real Estate Agent · Scottsdale, AZ · Member since 2016 · 114 posts · 42 votes
6y
@Jason munger did you ever get it done? I am having a similar problem... can't get anyone there to actually call me back. Does anyone have a good contact over there for a HELOC?
I can tell you from experience, that if you wait for someone to call back, it will never get done. We called so many times and each time we were told someone would call us back, and it never happened.
We finally decided to just apply for one, and about two weeks after that the process started.
@Jason munger did you ever get it done? I am having a similar problem... can't get anyone there to actually call me back. Does anyone have a good contact over there for a HELOC?
Yes, we finally closed on the loan. But their delays almost cost us a deal. Very frustrating.
Honestly, I don’t have a name to recommend because no matter who we talked to, it seems like something got messed up. I’m sure someone there is helpful, I just haven’t spoken to them yet.
Investor · Member since 2019 · 82 posts · 29 votes
6y
I never able to get HELOC for investment properties in TX. The option i see is do an "All-In-One" product for investment property. It behaves like an HELOC, and i love the product and the interest rate is light higher than conventional. With COVID, they are doing 1 investment per borrower otherwise 4.
CMG or Ridge Lending Group are the 2 lenders who provides "All-In-One".
Real Estate Investor · New York, NY · Member since 2014 · 81 posts · 46 votes
6y
Loan Officer is fortunately responsive (initial person I got in touch with to start the process), Loan Processor although empathetic, is almost unreachable. Be open to picking up phone calls from random numbers because I happened to pick up and it was her.
I started the process late June, home appraisal has been done 3 weeks ago and came back with conditions, and it's been almost 2 weeks since I have fixed what they requested to fix, also sent pictures and still no response.
Loan Officer said there was no change in my status, I reached out to my loan processor's manager, over 4 emails and 2 voicemails, still waiting...
Rental Property Investor · Jacksonville, FL · Member since 2008 · 784 posts · 528 votes
5y
I'm now on day 90 of my PENFED HELOC here in Florida. I can understand thorough, but this is rediculous. They did a drive by appraisal with a company affiliated with XOME. The value on the XOME site was higher than Penfed offered me, so get ready for a low-ball number. Still waiting on my loan processor who is about useless. You have to call them daily and email them as well contact their admin people. You can get the PENFED account setup quick and easy and I have had 2 months of statements while I wait for approval or denial. If this does not work, I may go to TD Bank for the HELOC.
any one here have a contact who does multi family heloc in california? only investment property. looks like everyone here knows a lot but might be the wrong spot to ask. tyia
Rental Property Investor · Bremerton, WA · Member since 2017 · 12 posts · 9 votes
5y
@Sunny Suh Do you mind if I ask what conditions they wanted to you to fix? We are going through the heloc process with penfed now, 2.5 months in and haven't gotten to the appraisal point yet. I'm hoping to mentally prepare for what's to come...