Pulling out equity from investment property
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Kerry BairdPro Member
Rental Property Investor · Melbourne, FL · Member since 2011 · 3k+ posts · 2k+ votesI have been building this list for a few years, @Scott Trench
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.
Try local community bank or credit union for investment properties. TD Bank and US Bank are my best recommendations….PenFed FCU was tops, until recently, when they paused HELOCs.
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. 670 to 739 is "good" 740+ excellent.
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
Bancorp South, TX Lines of Credit on free and clear houses
Bank of Southern California, CA
Bank of West (BNP Paribas) 60% LTV CA, AZ, OR
BB&T will loan on a rental portfolio
BBVA, now PNC
BECU for OR
Bellwether Community Credit Union, NH and MA 85% to 100%, draw 10 yrs
BMO Harris, 3 HELOCs to 70% LTV
Boeing Employee Credit Union
Cal Coast Credit Union, CA
Change Wholesale
Chelsea Groton Bank, CT
Citizens Bank -MN
Citizens, first position HELOC
CMG Financial 70% LTV CMG Financial in Idaho will do 100% on owner occupied.
Coastal Federal Bank of NC
Consolidated CCU, high LTV NOO LOC, OR, WA
East West Bank, up to 60% LTV with "no docs" CA, WA, NV, GA, NY, TX and MA. Super easy.
Eastern CT Savings Bank, CT
Figure 80% on a rental, not in LLC
Finance of America, 95% CLTV, second home only, 680 FICO, not TX
FirstBank CO and AZ 75% LTV
First Florida Credit Union FL
First Commonwealth
First Midwest, IL up to 90% Chicago area
First Tech Federal. OR and other Western states. Up to 80% if FICO is over 780, no appraisal under $250k value.
First Republic - CA
Fremont Bank- CA
Frost Bank - TX
Fulton Bank, PA, NJ
GFA Federal Credit Union 10 yr draw, 10 yr repay, MA, NH
Granite State CU, NH 90-100%
Great Lakes Credit Union, Chicago area IL
GTE Financial, Tampa, Sarasota area FL w 2 yrs tax history on property
Hanscom FCU, TX
HSBC 70%, for premier clients only. FL, NY, MD, CA, VA, NJ,
Horizon Bank, Kalamazoo MI
Huntington MI 75% LTV 5 yr IO product available. Someone reported 80%…need confirmation
Hurst Lending and Insurance Investment property HELOC in Texas. No seasoning. Bridge, portfolio, foreign national and other specialty loan products.
KeyBank, flexible lender, HELOCs on second
homes and rental properties. 90% LTV on primary. BLOC FL, CO, OH, UT, ID
Lafayette Ambassador Bank
Merchants Bank MN See Pavel Ushakov
Mid-Hudson Valley FCU
Mountain America CU Utah, ID, MT, NV, AZ, NM. 85% LTV, promo rate of 1.99%. Can refi an existing mortgage to a shorter term "Mini Mortgage." Currently on pause. Let me know if they start up again.
Navy Federal 80% LTV
Norway Savings Bank, Maine
Omaha Mortgage
Oregonians CU - OR
PenFed - PAUSED. Let me know if they start again. Was max 3 other properties, including primary. 80% LTV, prime + 1%, <4 properties. Pulls Equifax.
Peoples Bank of NC
PSECU up to 80%
Quorum Federal Credit Union 80% LTV, owned by LLC is OK. Very flexible lender. NY. 5 year draw, IO for 5 yrs and PI for 10 year repayment period. FICO at least 680. Not in Texas.
Quontic
Red Canoe Credit Union, WA OR
Regions
River Bank & Trust, AL
Rivermark Credit Union, OR 90% LTV
SCCU Florida 80% LTV, 2.75% first year promo, not LLC
SECU NC 65% LTV rate 2.75% Oct 2021
Signature Federal Credit Union 75% LTV (100% on primary residence), VA
Silvergate Bank, CA
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." CT
SouthEast Bank TN
Symmetry
S&T Bank, PA
TCF Bank, FL, GA
TD Bank 75% line with FICO about 740. Up to 4 properties.
Torrey Pines Bank, see also Western Alliance Bank Corp. Commercial real estate solutions for developers, home builders.
Troy Bank & Trust, AL
Trustco Bank, FL, NY, NJ, MA, VT
Trustmark Bank, TX. Call it a LOC rather than a HELOC
Union Bank, specializes in noo HELOC. KCMO, NE., MUFG.
Upstate Bank in Rochester NY, LOC up to 80%
US Bank 80%. “Business equity line of credit: Use Real Estate as Equity” up to $500k, interest only. gather your business and personal tax returns, financial statements, articles of incorporation and other legal documents.”
Vectra Bank - Colo
Veritex, TX HELOC
Webster Bank, CT
WAFD Bank. Origination fee 1% or $700. Can be in an LLC, max 75% LTV. WA, OR, UT, NV, ID, NM, AZ, TX. All-in-One construction loan, too.
WellsFargo 60% LTV Up to 5 properties.
Workers Credit Union, MA 80-100%
WSFS...up to 70% on rental
Zions Bank, Utah
NO: Truist
TEXAS https://www.cutx.org/home-equity-loans/helocs WAFD, Frost, Trustmark
High primary, not investment, HELOC:
Spring EQ 97.5% and fast, at 11 days
SMALL BALANCE HELOC ON PRIMARY
US Bank 15k to $750k 10 year draw. Requires high FICO 730 and LTV 70% or less
PenFed Best Credit Union $25 to $500k 10 yr draw. Up to 90% LTV.
Bank of America, low fee. $25k to $1 million, 10 year draw. HUGE line
PNC Bank best for small home improvements $10k up. 7 to 10 yr draw.
TD Bank from $8 k up. Can go from $25 to $500k…large line.
Frost Bank, in Texas only.
CALIFORNIA: Bank of Southern California, Bank of West (BNP Paribas), Cal Coast Credit Union, East West Bank, up to 60% LTV with "no docs" San Fran, First Republic, Fremont Bank, Golden1, HSBC, Quorum FCU, Silvergate Bank,
TEXAS
Frost Bank, East West Bank, Hanscom FCU, Trustmark Bank, Veritex, WAFD Bank
UTAH
Mountain American Credit Union and America First have great rates for HELOCs
America First will do a HELOC on an investment property in Utah.
STR DSCR Mortgages (not HELOCs)
Visio
Host Financial
American Heritage
LendingOne
RCN
Temple View Capital
26 Replies
- Flipper/Rehabber · Rochester, NY · Member since 2014 · 1k+ posts · 1k+ votes4y
You do not need to get “creative” for this. Just find a local bank or credit union who will do it—assuming your finances are in order. They are out there.
- 4yCorby GoadeBusiness MemberInvestor · Boise, ID · Member since 2014 · 3k+ posts · 3k+ votes
You'll get a higher LTV if you live there, but there are still plenty of lenders that do conventional cash out refis on non-owner occupied properties. Ask a few investors or realtors in your area for a referral.
Best of luck!
- Financial Advisor · Des Moines, IA · Member since 2017 · 173 posts · 58 votes4y
@Seb Ko - There is an abundance of lenders that would do a cash out refi on a 3-unit rental. Not sure why you would be having trouble finding one just based on the property type. If you move into the property and make it an owner-occupied deal, then your lending options would be restricted to owner-occupied residential loans only.
Quote from @Ryan O'Mara:
@Seb Ko - There is an abundance of lenders that would do a cash out refi on a 3-unit rental. Not sure why you would be having trouble finding one just based on the property type. If you move into the property and make it an owner-occupied deal, then your lending options would be restricted to owner-occupied residential loans only.
Do you know if this is the case for HELOC as well? Or is that a residential product only?
Quote from @Seb Ko:
Quote from @Ryan O'Mara:
@Seb Ko - There is an abundance of lenders that would do a cash out refi on a 3-unit rental. Not sure why you would be having trouble finding one just based on the property type. If you move into the property and make it an owner-occupied deal, then your lending options would be restricted to owner-occupied residential loans only.
Do you know if this is the case for HELOC as well? Or is that a residential product only?
Cash out refi on investment property is very easy to find. Any mortgage broker should be able to do this and most banks should be able to do this. Cash out will not have as low a rate as a refinance of only the existing debt.
HELOC on investment properties are more difficult. Another BP user put together this list of lenders offering HELOC. It is ~7 months old so I suspect it is not perfectly accurate, but it would provide a good start if you desire a HELOC on non-owner occupied property:
- Ridge Lending All in One
- Americafirst
- Arvest Bank
- California: Cal Coast Credit Union and Fremont Bank.
- East West Bank, up to 60% LTV with "no docs"
- First Florida Credit Union [https://firstflorida.cumortgag... Lending and Insurance Investment property HELOC in Texas. No seasoning.
- Key Bank, flexible lender, HELOCs on second homes and rental properties.
- PenFed - max 3 other properties
- LendingTree is a broker, connects you with multiple loan providers, some sub prime.
- TD Bank
- Tower FCU, all states except TX, Automated appraisal.
- Trustco
- Union Bank
- US Bank
- Figure
Good luck
- Lender · Winlock, WA · Member since 2013 · 1k+ posts · 1k+ votes4y
Pen Fed is one of the best places to get a HELOC on a rental.
I hope this helps?
- 4yScott TrenchPro MemberRental Property Investor · Denver, CO · Member since 2014 · 2k+ posts · 6k+ votes
Quote from @Dan H.:
Quote from @Seb Ko:
Quote from @Ryan O'Mara:
@Seb Ko - There is an abundance of lenders that would do a cash out refi on a 3-unit rental. Not sure why you would be having trouble finding one just based on the property type. If you move into the property and make it an owner-occupied deal, then your lending options would be restricted to owner-occupied residential loans only.
Do you know if this is the case for HELOC as well? Or is that a residential product only?
Cash out refi on investment property is very easy to find. Any mortgage broker should be able to do this and most banks should be able to do this. Cash out will not have as low a rate as a refinance of only the existing debt.
HELOC on investment properties are more difficult. Another BP user put together this list of lenders offering HELOC. It is ~7 months old so I suspect it is not perfectly accurate, but it would provide a good start if you desire a HELOC on non-owner occupied property:
- Ridge Lending All in One
- Americafirst
- Arvest Bank
- California: Cal Coast Credit Union and Fremont Bank.
- East West Bank, up to 60% LTV with "no docs"
- First Florida Credit Union [https://firstflorida.cumortgag... Lending and Insurance Investment property HELOC in Texas. No seasoning.
- Key Bank, flexible lender, HELOCs on second homes and rental properties.
- PenFed - max 3 other properties
- LendingTree is a broker, connects you with multiple loan providers, some sub prime.
- TD Bank
- Tower FCU, all states except TX, Automated appraisal.
- Trustco
- Union Bank
- US Bank
- Figure
Good luck
@Dan H. - Thank you for re-posting this list!
@Account Closed - This list might be valuable for some members - I personally was having trouble finding a good lender to offer a HELOC on a rental property portfolio.
@Walker Hinshaw as well.
- 4yKerry BairdPro MemberRental Property Investor · Melbourne, FL · Member since 2011 · 3k+ posts · 2k+ votes
I have been building this list for a few years, @Scott Trench
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.
Try local community bank or credit union for investment properties. TD Bank and US Bank are my best recommendations….PenFed FCU was tops, until recently, when they paused HELOCs.
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. 670 to 739 is "good" 740+ excellent.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
Bancorp South, TX Lines of Credit on free and clear houses
Bank of Southern California, CA
Bank of West (BNP Paribas) 60% LTV CA, AZ, OR
BB&T will loan on a rental portfolio
BBVA, now PNC
BECU for OR
Bellwether Community Credit Union, NH and MA 85% to 100%, draw 10 yrs
BMO Harris, 3 HELOCs to 70% LTV
Boeing Employee Credit Union
Cal Coast Credit Union, CA
Change Wholesale
Chelsea Groton Bank, CT
Citizens Bank -MN
Citizens, first position HELOC
CMG Financial 70% LTV CMG Financial in Idaho will do 100% on owner occupied.
Coastal Federal Bank of NC
Consolidated CCU, high LTV NOO LOC, OR, WA
East West Bank, up to 60% LTV with "no docs" CA, WA, NV, GA, NY, TX and MA. Super easy.
Eastern CT Savings Bank, CT
Figure 80% on a rental, not in LLC
Finance of America, 95% CLTV, second home only, 680 FICO, not TX
FirstBank CO and AZ 75% LTV
First Florida Credit Union FL
First Commonwealth
First Midwest, IL up to 90% Chicago area
First Tech Federal. OR and other Western states. Up to 80% if FICO is over 780, no appraisal under $250k value.
First Republic - CA
Fremont Bank- CA
Frost Bank - TX
Fulton Bank, PA, NJ
GFA Federal Credit Union 10 yr draw, 10 yr repay, MA, NH
Granite State CU, NH 90-100%
Great Lakes Credit Union, Chicago area IL
GTE Financial, Tampa, Sarasota area FL w 2 yrs tax history on property
Hanscom FCU, TX
HSBC 70%, for premier clients only. FL, NY, MD, CA, VA, NJ,
Horizon Bank, Kalamazoo MI
Huntington MI 75% LTV 5 yr IO product available. Someone reported 80%…need confirmation
Hurst Lending and Insurance Investment property HELOC in Texas. No seasoning. Bridge, portfolio, foreign national and other specialty loan products.
KeyBank, flexible lender, HELOCs on second
homes and rental properties. 90% LTV on primary. BLOC FL, CO, OH, UT, ID
Lafayette Ambassador Bank
Merchants Bank MN See Pavel Ushakov
Mid-Hudson Valley FCU
Mountain America CU Utah, ID, MT, NV, AZ, NM. 85% LTV, promo rate of 1.99%. Can refi an existing mortgage to a shorter term "Mini Mortgage." Currently on pause. Let me know if they start up again.
Navy Federal 80% LTV
Norway Savings Bank, Maine
Omaha Mortgage
Oregonians CU - OR
PenFed - PAUSED. Let me know if they start again. Was max 3 other properties, including primary. 80% LTV, prime + 1%, <4 properties. Pulls Equifax.
Peoples Bank of NC
PSECU up to 80%
Quorum Federal Credit Union 80% LTV, owned by LLC is OK. Very flexible lender. NY. 5 year draw, IO for 5 yrs and PI for 10 year repayment period. FICO at least 680. Not in Texas.
Quontic
Red Canoe Credit Union, WA OR
Regions
River Bank & Trust, AL
Rivermark Credit Union, OR 90% LTV
SCCU Florida 80% LTV, 2.75% first year promo, not LLC
SECU NC 65% LTV rate 2.75% Oct 2021
Signature Federal Credit Union 75% LTV (100% on primary residence), VA
Silvergate Bank, CA
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." CT
SouthEast Bank TN
Symmetry
S&T Bank, PA
TCF Bank, FL, GA
TD Bank 75% line with FICO about 740. Up to 4 properties.
Torrey Pines Bank, see also Western Alliance Bank Corp. Commercial real estate solutions for developers, home builders.
Troy Bank & Trust, AL
Trustco Bank, FL, NY, NJ, MA, VT
Trustmark Bank, TX. Call it a LOC rather than a HELOC
Union Bank, specializes in noo HELOC. KCMO, NE., MUFG.
Upstate Bank in Rochester NY, LOC up to 80%
US Bank 80%. “Business equity line of credit: Use Real Estate as Equity” up to $500k, interest only. gather your business and personal tax returns, financial statements, articles of incorporation and other legal documents.”
Vectra Bank - Colo
Veritex, TX HELOC
Webster Bank, CT
WAFD Bank. Origination fee 1% or $700. Can be in an LLC, max 75% LTV. WA, OR, UT, NV, ID, NM, AZ, TX. All-in-One construction loan, too.
WellsFargo 60% LTV Up to 5 properties.
Workers Credit Union, MA 80-100%
WSFS...up to 70% on rental
Zions Bank, Utah
NO: Truist
TEXAS https://www.cutx.org/home-equity-loans/helocs WAFD, Frost, Trustmark
High primary, not investment, HELOC:
Spring EQ 97.5% and fast, at 11 days
SMALL BALANCE HELOC ON PRIMARY
US Bank 15k to $750k 10 year draw. Requires high FICO 730 and LTV 70% or less
PenFed Best Credit Union $25 to $500k 10 yr draw. Up to 90% LTV.
Bank of America, low fee. $25k to $1 million, 10 year draw. HUGE line
PNC Bank best for small home improvements $10k up. 7 to 10 yr draw.
TD Bank from $8 k up. Can go from $25 to $500k…large line.
Frost Bank, in Texas only.
CALIFORNIA: Bank of Southern California, Bank of West (BNP Paribas), Cal Coast Credit Union, East West Bank, up to 60% LTV with "no docs" San Fran, First Republic, Fremont Bank, Golden1, HSBC, Quorum FCU, Silvergate Bank,
TEXAS
Frost Bank, East West Bank, Hanscom FCU, Trustmark Bank, Veritex, WAFD Bank
UTAH
Mountain American Credit Union and America First have great rates for HELOCs
America First will do a HELOC on an investment property in Utah.
STR DSCR Mortgages (not HELOCs)
Visio
Host Financial
American Heritage
LendingOne
RCN
Temple View Capital
- Can you give me the names please? I’ve contacted nearly every lender recommended and none do it. Quite a few just stopped in the last 2 months.
Quote from @Martha Nowlan:
@Seb Ko I'm doing the same thing right now and every lender I've contacted said they can do it, just usually 75% LTV. Talk to local credit unions and banks if you haven't already.
- Lender · CO CA TX WA ID OR · Member since 2020 · 419 posts · 542 votes4y
@Kerry Baird this is incredible. Thank you so much for providing this list as I get (and I'm sure other lenders get) a ton of questions about HELOCs on investment properties.
I did want to point out that there are 2 that you mention that have minor details associated with them.
Fremont Bank will do HELOCs up to 60% LTV (blah). Also they only service a handful of states.
Spring EQ will do a HE Loan (not a HELOC) on an investment up to 90% (I think most states). SpringEQ briefly had a HELOC product for a few months this year then they just removed it recently - I just spoke with them last week.Again, thanks a bunch!
- Denver, CO · Member since 2018 · 133 posts · 97 votes4y
@Roderick Lindenmuth Does Lower.com offer HELOCs on investment properties or have any plans to offer this in the future?
- Real Estate Broker · 3412 S. Harlem Avenue Riverside, IL 60546 · Member since 2015 · 6k+ posts · 5k+ votes4y
@Seb Ko I have done cash outs many times. @Joshua Jones is my guy here in the Chicago area. You definitely don't need to owner occupy. Connect with Josh and he can help you out.
- 4yJoshua JonesPro MemberMember since 2020 · 70 posts · 32 votes
Thank you @John Warren. @Seb Ko there are a handful or rules when it comes to pulling out cash of multi-unit investments. Feel free to private message me and we can discuss further. There are options though.
- 4yBasit SiddiqiBusiness MemberAccountant · New York, NY · Member since 2015 · 8k+ posts · 3k+ votes
How many lenders did you speak with that told you they can't lend do you?
Did they say why they won't lend to you?
Do you have enough equity in the property? If you have less than 25% of equity, they won't provide you a loan
How is your DTI Ratio? If your DTI ratio is high, they won't lend do you(I don't know the rate but I think its around 45%)
Do you have clear title?
Basit Siddiqi CPA4.880 Reviews - Lender · Miami, FL · Member since 2022 · 135 posts · 31 votes4y
If the property DSCRs you can get up to 80% LTV refi no income docs needed.
- Member since 2022 · 9 posts · 1 vote4y
Quote from @Seb Ko:
Can you give me the names please? I’ve contacted nearly every lender recommended and none do it. Quite a few just stopped in the last 2 months.Quote from @Martha Nowlan:
@Seb Ko I'm doing the same thing right now and every lender I've contacted said they can do it, just usually 75% LTV. Talk to local credit unions and banks if you haven't already.
If you or anyone is in the market, I just spoke to Bank of West and they are still doing helocs on investment properties.
- Investor · Austin, TX · Member since 2019 · 12 posts · 5 votes4y
For Hurst Lending, their 2nd lien investment property offerings are 6-month balloon FYI.
- Investor · North Haven, CT · Member since 2018 · 29 posts · 18 votes4y
Eastern CT Savings Bank, CT will not loan a LOC on a rental property
Quote from @Jonathan Taylor:
@Seb Ko can you provide the reasons why the lenders you called deny your loan? I agree to the above C/O refis are super easy and as long as LTV, FICO, and financials line up, you should be fine.
Most have specific rules on either which state the property is, if it's multi-unit, and if there is a first lien. I have only found one lender for example that allows for a HELOC on multi unit property in IL that has a first morgage.
Quote from @Kevin Romines:
Pen Fed is one of the best places to get a HELOC on a rental.
I hope this helps?
No longer offer this as of a few months ago
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