Rental Property Investor · Norfolk, VA · Member since 2016 · 101 posts · 29 votes
Im looking for a HELOC for an investment property that is free and clear. What can I expect in loan to value and interest. I wish to use this to purchase investment properties for cash, then refinance using BRRR. Can anyone help me in getting this started. My score is above 680.
@Freddie Williams. Not true. Local credit unions and community banks are the go-to for many.
I've gleaned these lenders from the kind people on BP. I 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. These were largely sourced pre-CV19, so eat the fish and spit out the bones.
The DTI percentage range varies by lender, and is less than what you will find for an owner occupied property, due to lender risk. While qualifying for a HELOC is dependent on your home equity and your credit score, good or excellent credit makes it easier to qualify. A good average to shoot for is 620 or higher. Plus, the better your credit score, the better your interest rate.
Ridge Lending All in One, first position HELOC
AFCU does 80% LTV on NOO. Utah
Americafirst 80% LTV on noo 65% LTV Utah
Arvest Bank AR, OK, AL, MO
Bank of Souther California
Bank of West (BNP Paribas) 60% LTV ELOCs
BB&T will loan on a rental portfolio
BBVA, now PNC
Bellwether NH and MA 85% to 100%, draw 10 yrs
BMO Harris, 3 HELOCs to 70% LTV
Boeing employee credit union
California: Cal Coast Credit Union and Fremont Bank
Citizens Bank -Minnesota, only in-state. Kyle Potswald
Hurst Lending and Insurance Investment property HELOC in Texas. No seasoning. Bridge, portfolio, foreign national and other specialty loan products.
Key Bank, FLorida flexible lender, HELOCs on second homes and rental properties. 90% LTV on primary.
Mountain America Credit Union in Utah, Idaho, Montana, Nevada, Arizona, New Mexico. 85% LTV, promo rate of 1.99%. Can refinance an existing mortgage on investment property to a shorter term “Mini Mortgage.”
Merchants Bank MN See Pavel Ushakov
Navy Federal 80% LTV
PenFed - max 3 other properties, including primary. 80% LTV, prime + 1%, <4 properties
Quorum Federal Credit Union 80% equity, owned by LLC is OK. No limit on number of properties held. 5 year interest only payments. New York State. Tiffany Mazzoccoli. 2021
Regions- yes HELOC but no LOC
River Bank & Trust, AL
SCCU Florida 70% LTV, 6.25% interest only, not LLC
SECU NC 65% LTV rate 2.75% Oct 2021
Signature Federal Credit Union 75% LTV
Silvergate Bank
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.”
@Freddie Williams. Not true. Local credit unions and community banks are the go-to for many.
I've gleaned these lenders from the kind people on BP. I 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. These were largely sourced pre-CV19, so eat the fish and spit out the bones.
The DTI percentage range varies by lender, and is less than what you will find for an owner occupied property, due to lender risk. While qualifying for a HELOC is dependent on your home equity and your credit score, good or excellent credit makes it easier to qualify. A good average to shoot for is 620 or higher. Plus, the better your credit score, the better your interest rate.
Ridge Lending All in One, first position HELOC
AFCU does 80% LTV on NOO. Utah
Americafirst 80% LTV on noo 65% LTV Utah
Arvest Bank AR, OK, AL, MO
Bank of Souther California
Bank of West (BNP Paribas) 60% LTV ELOCs
BB&T will loan on a rental portfolio
BBVA, now PNC
Bellwether NH and MA 85% to 100%, draw 10 yrs
BMO Harris, 3 HELOCs to 70% LTV
Boeing employee credit union
California: Cal Coast Credit Union and Fremont Bank
Citizens Bank -Minnesota, only in-state. Kyle Potswald
Hurst Lending and Insurance Investment property HELOC in Texas. No seasoning. Bridge, portfolio, foreign national and other specialty loan products.
Key Bank, FLorida flexible lender, HELOCs on second homes and rental properties. 90% LTV on primary.
Mountain America Credit Union in Utah, Idaho, Montana, Nevada, Arizona, New Mexico. 85% LTV, promo rate of 1.99%. Can refinance an existing mortgage on investment property to a shorter term “Mini Mortgage.”
Merchants Bank MN See Pavel Ushakov
Navy Federal 80% LTV
PenFed - max 3 other properties, including primary. 80% LTV, prime + 1%, <4 properties
Quorum Federal Credit Union 80% equity, owned by LLC is OK. No limit on number of properties held. 5 year interest only payments. New York State. Tiffany Mazzoccoli. 2021
Regions- yes HELOC but no LOC
River Bank & Trust, AL
SCCU Florida 70% LTV, 6.25% interest only, not LLC
SECU NC 65% LTV rate 2.75% Oct 2021
Signature Federal Credit Union 75% LTV
Silvergate Bank
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.”
@Freddie Williams Using a HELOC to pay cash for properties, and eventually refi after a 'seasoning period' or BRRRR, is a great move! I'm working with an out-of-state investor at the moment and we are under contract on a house that he made a cash offer on using his HELOC.
He was able to get a 5/15 (5 year term @ 15 year amortization) at a little under 4% interest. I believe they gave him a 70% LTV on his primary residence and he has a great credit score.
His plan is to purchase, season for 6 months, refinance, pay off the HELOC, repeat. I'm excited to see how this works out in the next couple of years.
@Troy DeLong Several lenders in my area have been know to waive the 6 month seasoning period when it comes to cash purchases (including HELOC.) id say it's worth looking look into it, save on some holding costs
@Alan Bostick Even better. I will have him look into that for this deal. Refinancing sooner rather than later, especially with these low rates, would be ideal! Thanks for the heads up.