Rental Property Investor · Sarasota, FL · Member since 2017 · 81 posts · 41 votes
Hey BP! I am looking for any competitive lenders who are still offering HELOC's on investment properties? It seems like most lenders have pulled back and have restricted this to primary residences only now. The purpose for looking for a HELOC opposed to a re-fi is the flexibility of pulling money out in draws, and the low fee structure compared to a re-fi with closing costs and greater points. For example I was in process of getting one with 5/3 bank at 80% LTV, at prime to prime+0.7% and only a small few hundred dollar fee, but they literally JUST shut that product off on investment properties. I believe Wells Fargo and others have done the same. Is there any other major players left that will do this at competitive costs? This is on a BRRRR property that I've had for just 4-5 months now in Bradenton / Sarasota Florida
TD Bank is positively doing HELOCs on investment properties in this season. As for the rest, I have not checked. Eat the fish and spit out the bones (AKA do your own calling...this took me some time)
Ridge Lending All in One, first position HELOC...has to be in own name, and a few more stringent requirements. But is a 20 year adjustable and drawable product, with a further 10 year payback period.
AFCU does 80% LTV on NOO. Utah
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 Bank -Minnesota, only in-state. Kyle Potswald
@Mark Albini I've contacted a few local CU's, and many local banks, they all don't have the HELOC product on investment properties, and on investment property refi's go by the Fanny Mae regulations which allow 75% LTV based on the original sales price after 6 months ownership up to 1 year. Unless you made major improvements to justify using the appraised value. After 1 yr they can use the appraised value.
Have you worked with a commercial lender/broker? I'd contact one to see what they can do. Some banks lend out privately and don't have to follow Fannie Mae regulations, because I cash out as soon as I can. Sometimes within a month of purchase.
@Andrew DeWeerd. I’m in North Port just south of you and highly interested in this thread. I just did a refi/cash out on my duplex but wondering about heloc world
TD Bank is positively doing HELOCs on investment properties in this season. As for the rest, I have not checked. Eat the fish and spit out the bones (AKA do your own calling...this took me some time)
Ridge Lending All in One, first position HELOC...has to be in own name, and a few more stringent requirements. But is a 20 year adjustable and drawable product, with a further 10 year payback period.
AFCU does 80% LTV on NOO. Utah
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 Bank -Minnesota, only in-state. Kyle Potswald
@Andrew DeWeerd I secon Union Bank and Trust. A great small bank that is in KC and NE. Not sure if they do much out of state lending but I would call them. Also, try central bank and any of your local banks. Call, ask them if they do, if they don't, ask them if they know who does.
@Andrew DeWeerd I don't know how big TD Bank is or if they would do work across the country, but I just took out a HELOC on a rental with them here in Charleston, SC. Closing was a pain and the whole process was a wreck, but after calling about 15 banks, they were the only ones I found near me who would do one on an investment property. I think it was 65% LTV
Hey BP! I am looking for any competitive lenders who are still offering HELOC's on investment properties? It seems like most lenders have pulled back and have restricted this to primary residences only now. The purpose for looking for a HELOC opposed to a re-fi is the flexibility of pulling money out in draws, and the low fee structure compared to a re-fi with closing costs and greater points. For example I was in process of getting one with 5/3 bank at 80% LTV, at prime to prime+0.7% and only a small few hundred dollar fee, but they literally JUST shut that product off on investment properties. I believe Wells Fargo and others have done the same. Is there any other major players left that will do this at competitive costs? This is on a BRRRR property that I've had for just 4-5 months now in Bradenton / Sarasota Florida
Andrew,
Have you found a decent HELOC option yet? I am in the exact same situation as you and am looking for a HELOC to buy more property with.
UPDATE: I called maybe 8-10 local CU and national banks here, and TD is the ONLY one left that I found that would do either a HELOC or a cash-out Re-fi on an investment property! Here's what they offered on my (guessing ~$160k valued SFR).
HELOC: Assuming open checking acct, if Primary/Secondary home only $99 origination, no closing costs and 3.74% rate, 10/20 draw and repay. ON INVESTMENT property it would be 5.24% and about $2k in closing costs paid by borrower.
REFI: 75% of ARV after 6 months, 3.625% as of today ( I need to wait 2 weeks for my 6 months), + 3.375pts, + additional $3,800 in closing costs. So just under $8k in closing costs but this is on 30yr fixed rate mortgage.
I'm going to do the cash-out refi! Thank you for the help finding these guys!!! Might take them up on a personal residence HELOC as well if I need to tap into more...
I noticed you are in FL, my rentals are in FL as well - what lender do you find most friendly for HELOCS / ELOCS on investment properties in FL? Also, which one offers the highest LTV from your research?