HELOC on Rental Properties

Member since 2018 · 18 posts · 3 votes

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.

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Chris Choe

Lender · MD · Member since 2022 · 21 posts · 10 votes

@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.

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Malcomb StapelPro Member
Investor · Topeka, KS · Member since 2020 · 669 posts · 488 votes
4y
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.
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Chris Choe
Lender · MD · Member since 2022 · 21 posts · 10 votes
4y
@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.
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Dustin RosenbergBusiness Member
Lender · El Segundo · Member since 2022 · 27 posts · 8 votes
4y
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.
[email protected]800-913-2169
Convoy Home Loans.4.8336 Reviews
Website View Page
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Chad McMahan
Residential Real Estate Broker · Sedona, AZ · Member since 2017 · 751 posts · 504 votes
4y
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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William LokarBusiness Member
Realtor · Northeast TN and Central VA · Member since 2021 · 50 posts · 37 votes
4y
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.
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Kerry BairdPro Member
Rental Property Investor · Melbourne, FL · Member since 2011 · 3k+ posts · 2k+ votes
4y
You might try one of these: Bank of West, BNP Paribas, BB&T, Figure, Mountain America CU, Quorum FCU, WAFD Bank, US Bank.
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Ursula Leake
Member since 2020 · 36 posts · 18 votes
4y
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.

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Ursula Leake
Member since 2020 · 36 posts · 18 votes
4y
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.

0 Reply
Kyle HendricksPro Member
Lender · Member since 2021 · 170 posts · 74 votes
7mo
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.

We offer investment helocs! I do these quite a bit for investors. They also use automated appraisals so can be as quick as 5 day fundings. Shoot me a message it you have any questions, happy to help!
[email protected]253-355-0247
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