HELOC on Rental Properties
Are there any lenders that offer HELOCs on investment properties? I have 25 properties and would love to somehow use those as collateral for a HELOC - either multiple helocs, or ideally, just one larger line of credit.
However, all properties have mortgages on them with about 40% equity on average. I'm not interested in refinancing and pulling out cash as they are all locked with 30 year fixed rates, with very low interest. For me, I'm interested in HELOCs only.
Quote from @Ryan McCook:
Are there any lenders that offer HELOCs on investment properties? I have 25 properties and would love to somehow use those as collateral for a HELOC - either multiple helocs, or ideally, just one larger line of credit.
However, all properties have mortgages on them with about 40% equity on average. I'm not interested in refinancing and pulling out cash as they are all locked with 30 year fixed rates, with very low interest. For me, I'm interested in HELOCs only.
Yes, it is an option. Start talking with your local lenders and see what kind of LOC they are willing to offer you on that equity. I use two banks in my area, and both are small (only a few locations) and will offer products that the big banks aren't willing.
@Ryan McCook - yes there are several lenders that can do HELOCs for investment properties. One of our investor partners (we're a broker in Arizona) allows investment property HELOCS to 90% LTV and 97.5% on primaries.
Quote from @Ryan McCook:
Are there any lenders that offer HELOCs on investment properties? I have 25 properties and would love to somehow use those as collateral for a HELOC - either multiple helocs, or ideally, just one larger line of credit.
However, all properties have mortgages on them with about 40% equity on average. I'm not interested in refinancing and pulling out cash as they are all locked with 30 year fixed rates, with very low interest. For me, I'm interested in HELOCs only.
There are definitely Lenders out there that can help. it's just a matter of finding the right one that can maximize your LTV. I know many partners doing this in all 50 states.
Quote from @Ryan McCook:
Are there any lenders that offer HELOCs on investment properties? I have 25 properties and would love to somehow use those as collateral for a HELOC - either multiple helocs, or ideally, just one larger line of credit.
However, all properties have mortgages on them with about 40% equity on average. I'm not interested in refinancing and pulling out cash as they are all locked with 30 year fixed rates, with very low interest. For me, I'm interested in HELOCs only.
Ryan,
short answer- yes, plenty of investment HELOCS. Typically they are slightly harder to qualify for and have lower (but still approx 85%-90%) LTV. I'm a big fan of these programs.
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Real Estate Agent Arizona (#SA637448000 )
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Ryan,
I have used HELOCs on investment properties previously. They have been a great way to access equity, but many of the ones i have found have variable rates. Given the current rate environment I might not advise these. I recently refinanced my HELOCs into 30 year fixed rates to rate increases. I have found smaller local banks and credit unions to be a great source for investment HELOCs if you still want to go that route.
You might try one of these: Bank of West, BNP Paribas, BB&T, Figure, Mountain America CU, Quorum FCU, WAFD Bank, US Bank.
Hi! Do you care to share which banks you’ve worked with?
Quote from @William Lokar:
Ryan,
I have used HELOCs on investment properties previously. They have been a great way to access equity, but many of the ones i have found have variable rates. Given the current rate environment I might not advise these. I recently refinanced my HELOCs into 30 year fixed rates to rate increases. I have found smaller local banks and credit unions to be a great source for investment HELOCs if you still want to go that route.
which banks?
Quote from @Chad McMahan:
Quote from @Ryan McCook:
Are there any lenders that offer HELOCs on investment properties? I have 25 properties and would love to somehow use those as collateral for a HELOC - either multiple helocs, or ideally, just one larger line of credit.
However, all properties have mortgages on them with about 40% equity on average. I'm not interested in refinancing and pulling out cash as they are all locked with 30 year fixed rates, with very low interest. For me, I'm interested in HELOCs only.
Ryan,
short answer- yes, plenty of investment HELOCS. Typically they are slightly harder to qualify for and have lower (but still approx 85%-90%) LTV. I'm a big fan of these programs.