Need HELOC for a property under LLC

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Need HELOC for a property under LLC

Alpesh Parmar
Investor · Dublin, CA · Member since 2016 · 344 posts · 228 votes

Hope everyone is staying indoors and healthy!

I acquired a property couple years ago and did a BRRRR on it. I put in total $70K and it's worth $100K now. I bought it under my LLC and I have been thinking of refinancing. Can someone give me reference of lender who can give HELOC on an investment property owned under LLC?

Take care and stay safe!

2Reply
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Most Popular Reply

Kerry BairdPro Member
Rental Property Investor · Melbourne, FL · Member since 2011 · 3k+ posts · 2k+ votes
6y

@Guifre Mora and @Johnny Horner, 

I've gleaned these lenders over the course of a year or so. I personally have used PenFed and TD Bank for HELOCs on investment property. Post back if you find another lender who serves you well, and I will add them to my list and pay it forward.

Ridge Lending All in One, first position HELOC

Americafirst 80% LTV on noo 65% LTV Utah

Arvest Bank AR, OK, AL, MO

Bank of the west

BB&T will loan on a rental portfolio

BBVA Compass

Boeing employee credit union

California: Cal Coast Credit Union and Fremont Bank.

Citizens first position HELOC

CMG a financial 70% LTV

East West Bank, up to 60% LTV with "no docs”

Figure 80% on a rental, not in LLC

First Florida Credit Union https://firstflorida.cumortgag...

Great Lakes Credit Union

HSBC 70%, for premier clients only

Huntington 75% LTV

Hurst Lending and Insurance Investment property
HELOC in Texas. No seasoning.

Key Bank, FLorida flexible lender, HELOCs on second
homes and rental properties. 90% LTV on primary.

Merchants Bank MN See Pavel Ushakov
>=700 (credit score), <=80% LTV the rate would be Prime - .25% 
>=700 (credit score), 80.1% - 90% LTV the rate would be Prime + .50%
>=700 (credit score), >90%, the rate would be Prime + 1.75%
30 years; 10 yr draw, 20 yr repayment.
Annual fee $25.


PenFed - max 3 other properties, 89% LTV

Regions- yes HELOC but no LOC

SCCU Florida 70% LTV, 6.25% interest only, not LLC

Sound CU "non-owner occupied HELOC, capped at $150K and interest rates are prime + 2%, 3% or 4%, based on credit, not to exceed 70% ltv.”

TD Bank

TIAA Direct was EverBank

Tower FCU, all states except TX, max 45 DTI, green card ok. Max of three rental properties. Automated appraisal.

Trustco

Union Bank, specializes in noo HELOC. KCMO, NE

Union Bank, MUFG.

US Bank

Vectra Bank

5Reply
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  • Guifre Mora
    Lender · San Diego, CA · Member since 2019 · 874 posts · 355 votes
    6y
    Originally posted by @Alpesh Parmar:

    Hope everyone is staying indoors and healthy!

    I acquired a property couple years ago and did a BRRRR on it. I put in total $70K and it's worth $100K now. I bought it under my LLC and I have been thinking of refinancing. Can someone give me reference of lender who can give HELOC on an investment property owned under LLC?

    Take care and stay safe!

    I have yet to find an N/O/O HELOC. If you do please share.

    0Reply
  • Johnny Horner
    Investor · Lebanon, OR · Member since 2016 · 32 posts · 23 votes
    6y

    @Guifre Morai am searching for a HELOC or refi so I have some capital to take advantage of any future deals, sounds like HELOCs have been frozen, anyone have any info. FYI, this is on investment property and not primary.

    0Reply
  • Johnny Horner
    Investor · Lebanon, OR · Member since 2016 · 32 posts · 23 votes
    6y

    @Guifre Morai am searching for a HELOC or refi so I have some capital to take advantage of any future deals, sounds like HELOCs have been frozen, anyone have any info. FYI, this is on investment property and not primary.

    0Reply
  • Guifre Mora
    Lender · San Diego, CA · Member since 2019 · 874 posts · 355 votes
    6y
    Originally posted by @Johnny Horner:

    @Guifre Morai am searching for a HELOC or refi so I have some capital to take advantage of any future deals, sounds like HELOCs have been frozen, anyone have any info. FYI, this is on investment property and not primary.

     Refinances are still active, slim pickings but some players are out there who are direct lenders, flip loans are also available (75-100K) min property other than conventional and gov backed loans.  

    0Reply
  • Kerry BairdPro Member
    Rental Property Investor · Melbourne, FL · Member since 2011 · 3k+ posts · 2k+ votes
    6y

    @Guifre Mora and @Johnny Horner, 

    I've gleaned these lenders over the course of a year or so. I personally have used PenFed and TD Bank for HELOCs on investment property. Post back if you find another lender who serves you well, and I will add them to my list and pay it forward.

    Ridge Lending All in One, first position HELOC

    Americafirst 80% LTV on noo 65% LTV Utah

    Arvest Bank AR, OK, AL, MO

    Bank of the west

    BB&T will loan on a rental portfolio

    BBVA Compass

    Boeing employee credit union

    California: Cal Coast Credit Union and Fremont Bank.

    Citizens first position HELOC

    CMG a financial 70% LTV

    East West Bank, up to 60% LTV with "no docs”

    Figure 80% on a rental, not in LLC

    First Florida Credit Union https://firstflorida.cumortgag...

    Great Lakes Credit Union

    HSBC 70%, for premier clients only

    Huntington 75% LTV

    Hurst Lending and Insurance Investment property
    HELOC in Texas. No seasoning.

    Key Bank, FLorida flexible lender, HELOCs on second
    homes and rental properties. 90% LTV on primary.

    Merchants Bank MN See Pavel Ushakov
    >=700 (credit score), <=80% LTV the rate would be Prime - .25% 
>=700 (credit score), 80.1% - 90% LTV the rate would be Prime + .50%
>=700 (credit score), >90%, the rate would be Prime + 1.75%
    30 years; 10 yr draw, 20 yr repayment.
    Annual fee $25.


    PenFed - max 3 other properties, 89% LTV

    Regions- yes HELOC but no LOC

    SCCU Florida 70% LTV, 6.25% interest only, not LLC

    Sound CU "non-owner occupied HELOC, capped at $150K and interest rates are prime + 2%, 3% or 4%, based on credit, not to exceed 70% ltv.”

    TD Bank

    TIAA Direct was EverBank

    Tower FCU, all states except TX, max 45 DTI, green card ok. Max of three rental properties. Automated appraisal.

    Trustco

    Union Bank, specializes in noo HELOC. KCMO, NE

    Union Bank, MUFG.

    US Bank

    Vectra Bank

    5Reply
  • Alpesh Parmar
    OP
    Investor · Dublin, CA · Member since 2016 · 344 posts · 228 votes
    6y

    Thanks @Kerry Baird. Do you know if any of these lenders will lend on NOO property under LLC?

    0Reply
  • Kerry BairdPro Member
    Rental Property Investor · Melbourne, FL · Member since 2011 · 3k+ posts · 2k+ votes
    6y

    @Alpesh Parmar, US Bank

    0Reply
  • Alpesh Parmar
    OP
    Investor · Dublin, CA · Member since 2016 · 344 posts · 228 votes
    6y

    Thanks @Kerry Baird for quick response.

    0Reply
  • Johnny Horner
    Investor · Lebanon, OR · Member since 2016 · 32 posts · 23 votes
    6y

    Thanks @Kerry Baird, I was talking with ridge lending and they have recently stopped the all in o e heloc product.  I think in this environment lenders are changing requirements, guidelines, and product availability daily.

    0Reply
  • Steven LeeBusiness Member
    Lender · 18021 Norwalk Blvd Suite 209. Artesia, CA 90701 · Member since 2015 · 486 posts · 42 votes
    6y

    Alpesh,

    Unfortunately, your Loan to Value (LTV) is at 70%. No Bank or Lender will honor a Home Equity Line of Credit (HELOC) on a rental property. Even in a best case scenario you would have seasoning issues. You would have to quit claim deed your property from your LLC to your personal name and wait 6 to 12 months, If it was even possible. I've been in the lending Industry for 20 years, and I feel many people on BiggerPockets give misleading information a lot of times. I hope this helps you. Good Luck!

    [email protected]800-369-7009
    RCD Capital4.826 Reviews
    WebsiteView Page
    1Reply
  • Alpesh Parmar
    OP
    Investor · Dublin, CA · Member since 2016 · 344 posts · 228 votes
    6y
    Originally posted by @Steven Lee:

    Alpesh,

    Unfortunately, your Loan to Value (LTV) is at 70%. No Bank or Lender will honor a Home Equity Line of Credit (HELOC) on a rental property. Even in a best case scenario you would have seasoning issues. You would have to quit claim deed your property from your LLC to your personal name and wait 6 to 12 months, If it was even possible. I've been in the lending Industry for 20 years, and I feel many people on BiggerPockets give misleading information a lot of times. I hope this helps you. Good Luck!

    I understand about LTV but what do you mean by seasoning issues? This property has been cash flowing for exactly 2 years. I also know that I can get HELOC on rental but I wanted to find out if any lender will give HELOC on a rental which is owned by LLC. I do know that I can quit claim and get the loan and then quit claim it back to the LLC. I have done this before and I didn't have to wait for 6 to 12 months.
    As of now, most of the lenders have stopped HELOC because of rate reductions.

    0Reply
  • Steven LeeBusiness Member
    Lender · 18021 Norwalk Blvd Suite 209. Artesia, CA 90701 · Member since 2015 · 486 posts · 42 votes
    6y

    Alpesh,

    No bank or lender is going to give you a Home Equity Line of Credit If your property is under a LLC. your ratios is too risky at this present time. Generally if your property was under your personal name, most financial institutions would go up to 80% Combined Loan to Value (CLTV), but because of COVID 19. Majority of banks, credit unions, and hard money lenders are cutting back. I hope this helps you have a better understanding.

    [email protected]800-369-7009
    RCD Capital4.826 Reviews
    WebsiteView Page
    0Reply
  • Jag C.Pro Member
    Rental Property Investor · Member since 2018 · 74 posts · 22 votes
    4y

    @Alpesh Parmar Were you able to get a HELOC for your LLC rental property? Please share. Thank you.

    0Reply
  • Alpesh Parmar
    OP
    Investor · Dublin, CA · Member since 2016 · 344 posts · 228 votes
    4y
    No. I ended up selling that particular property.
    1Reply
  • Jag C.Pro Member
    Rental Property Investor · Member since 2018 · 74 posts · 22 votes
    4y

    @Alpesh Parmar Thank you for the quick reply! 

    1Reply
  • Joseph Konney
    Real Estate Agent · Forest Park, IL · Member since 2014 · 255 posts · 141 votes
    2y

    PenFed no longer does HELOC or related products for NOO LLC properties.

    1Reply
  • Stepan Furdei
    Member since 2021 · 1 post · 0 votes
    2y

    Did lenders reactivate HELOCs after the rates increased? Did anyone have any success obtaining a NOO HELOC under LLC recently now that the market is better for the lenders?

    0Reply
  • Kerry BairdPro Member
    Rental Property Investor · Melbourne, FL · Member since 2011 · 3k+ posts · 2k+ votes
    2y

    @Stepan Furdei, please try Quorum FCU, where they tout ownership in an LLC is OK. They have a 5 year draw.

    Navy Federal does HELOCs on investment properties…not sure if LLC is OK…and rates are in the 10.75% range for an investment HELOC in March of 2024. For comparison, a Navy Federal FCU personal loan will be in the 15s%

    3Reply
  • Chiane Martin
    Investor · Cleveland, OH · Member since 2023 · 10 posts · 5 votes
    1y
    Still having this same problem as of 1/28/2025.
    Just applied for a HELOC and was approved. When they realized that it was held in an LLC they denied my application. Not finding anyone that will give a heloc on non owner occupied (noo) titled LLC. Theyre all pushing for cashout refinance. Hopes this helps anyone looking currently.
    2Reply
  • Alece Shumpert
    Member since 2021 · 1 post · 0 votes
    1y

    @Chiane Martin Where did you apply for your HELOC on your property?

    0Reply
  • Chiane Martin
    Investor · Cleveland, OH · Member since 2023 · 10 posts · 5 votes
    1y
    Quote from @Alece Shumpert:

    @Chiane Martin Where did you apply for your HELOC on your property?

     Synergy One Lending 

    Huntington also said no

    0Reply
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