Best Bank for HELOC?

[Cody Dupuie]

I am trying to get a HELOC on my primary residence to buy my first investment property. I have spoke with both Flagstar bank and a local credit union and both informed me that the funds could not be used to purchase realestate. Any recommendations on how I should proceed? Would rather do a HELOC than a cash out refinance if possible.

[Alex Breshears]

Depending on the state you are in, some states do not allow tapping into equity for certain things. Texas is a good example that can be a bit tricky getting a HELOC on a primary residence because they are likely going to want to know what is going into the property. Texas is going to want you to refinance the whole loan into 1 loan and do a cash out refinance that way. So it isn't impossible to get cash out if you happen to be in Texas, but just realize that limitation. Also right now, banks are getting a bit more conservative because of some softening in the market in some places, so be realistic in the amount you think the home is worth and the LTV you are looking to get.

[John McKee]

I've had success with TD bank.  Give them a try.

[Andrew Postell]

@Cody Dupuie thanks for posting.  You have TONS of options for getting a HELOC on your primary home in Michigan. If you are looking for some good local suggestions I would suggest going to one of the many facebook groups. Just search for something like "Michigan/Detroit Investment Property" and several groups with THOUSANDS of members will be able to point you in the right direction for this.

Oh, and strange that Texas would be mentioned so prominently here but just in case anyone is searching for that topic...you can 100% get a 2nd lien HELOC on your primary home WITHOUT having to roll it into 1 loan.  

[Gerald Dougherty]

I recently got a heloc here in Colorado. Some of the major banks I checked with had suspended doing helocs due to "market conditions". I was able to find one a local credit union that went up to 80% and did not require a me to immediately borrow any money. Prime plus 3/4 I think it was. 

[Eric Prescott]

I was happy with PNC Bank's rates and process in October, but they were running a very attractive initial withdrawal offer at the time. YMMV. 

[Eliott Elias]

A local lender, not a mortgage broker who is going to charge you points on top of closing costs