Need access to a Heloc

5 Replies

My wife and I rehabbed a property 6 months ago and rented it out way above what the mortgage is. Current Mortgage is $460 and the unit rents for $1500. We want to take a heloc out on it to pay back her parents who helped us finance the deal. They were recently turned down for the heloc because the debt to income was 52% and needed to be 50%. Does anybody know of any banks that they could possibly run this Heloc through with?

Go through commercial lending and they wont care about your DTI as much, just the main income of the property and it's Debt Service Coverage Ratio. Based on the figures you've laid out, you should have no problems getting $ out with this property's performance.

Originally posted by @Lien Vuong :

Go through commercial lending and they wont care about your DTI as much, just the main income of the property and it's Debt Service Coverage Ratio. Based on the figures you've laid out, you should have no problems getting $ out with this property's performance.

Do you have any companies in mind? I saw bank of America but some of these companies only do it on Primary residences.

Thank you for the Reply!

 

I would just go with a local Savings Bank within 15 miles of your property and start calling them. Going with a major bank like BOA is not going to offer you the best rates and terms as the local lenders have more incentive to maintain your business.