Penfed has Axed the Non Owner Occupant HELOC
Penfed has Axed the Non Owner Occupant HELOC. Gotta love it how they pull it right before I was about to do two investment helocs with them.
I'd keep an eye on it and see when/if it changes. I think they did the same in March 2020 and within 3-6 months it came back. When the markets are rapidly changing it is prudent to minimize the riskier portions of the business until there's enough stability to make a wise decision. I'm actually glad to work with business that are willing to minimize their profits in the short term to maximize their stability in the long term. I was also hoping to complete a HELOC on a rental coming up, so I'm in the same boat...but I'm betting it comes back before too long.
HELOC (s) are like a credit card with the lender security of appreciation. From lender view markets that increased 20% or more last 12 months are likely to be earthquakey.
Nonowner/investment rates have done a red kangaroo jump. This morning someone who talked about doing a cash out refinance in December 2021 found out the rate is 2% higher.
Seeing mergers, NonQM lenders also falling back with lower LTV/more rules. If you have a loan in process at better or some of the fintech shops it's time to double apply somewhere else
@Adam Ailion
I called PENFED on April 8th for a HELOC on our rental, and the agent said, "I just received an email as of this morning that states, as of April 8th, no more HELOCs on rental properties going forward." He said that to call back in a month or so to check.
Chris
@Adam A. @Chris Davis @Caroline Gerardo @Matt Devincenzo
I started the loan process with PenFed for a HELOC on a NOO duplex in March of this year and closed on it in May. Maybe call them back or PM me and I can guide you to the loan manager I worked with.