1st Lien HELOC

Rental Property Investor · Weaver, AL · Member since 2016 · 24 posts · 13 votes

Has anyone used a HELOC on a rental property? I have equity in one of my houses but rent won't cover the mortgage if I cash out refinance. Looking for another way to pull out some cash. Also, I thought if I did a 1st lien HELOC then I could pay it off faster.

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Kerry BairdPro Member

Rental Property Investor · Melbourne, FL · Member since 2011 · 3k+ posts · 2k+ votes

Ridge Lending offers a first position HELOC.

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Dave Skow
Lender · Seattle, WA · Member since 2014 · 2k+ posts · 899 votes
3y
@Kenneth Bentley- 1) if you already have a mortgage on the rental property in question - any heloc you would place on the proeprty would be required to be in 2nd position and not possible to do a " 1st lien heloc " 2) there are not many HELOC lenders for rental properties
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Kenneth BentleyPro Member
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Rental Property Investor · Weaver, AL · Member since 2016 · 24 posts · 13 votes
3y
My thought was that I could pay off the mortgage with the HELOC and have it in the 1st position. I'm going to try to call local banks tomorrow.
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Stacy RaskinBusiness Member
Lender · Member since 2022 · 1k+ posts · 518 votes
3y
@Kenneth Bentley, what is the mortgage balance and what would you estimate the value of the rental property to be? These are major factors that lenders will consider as to whether they can do the loan besides your credit score.
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Kenneth BentleyPro Member
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Rental Property Investor · Weaver, AL · Member since 2016 · 24 posts · 13 votes
3y
@Stacy Raskin The balance is 58k and it should appraisec for 150k.
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Nixon C.
Rental Property Investor · Southern California · Member since 2023 · 39 posts · 11 votes
2y
@Kenneth Bentley - Curious if you were able to find a lender to offer you a first lien HELOC on your rental property. I am thinking about doing the same. Hoping you or anyone else can offer some insight.
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Kenneth BentleyPro Member
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Rental Property Investor · Weaver, AL · Member since 2016 · 24 posts · 13 votes
2y
Quote from @Nixon C.:

@Kenneth Bentley - Curious if you were able to find a lender to offer you a first lien HELOC on your rental property. I am thinking about doing the same. Hoping you or anyone else can offer some insight.
No sir, I didn't.

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Kerry BairdPro Member
Rental Property Investor · Melbourne, FL · Member since 2011 · 3k+ posts · 2k+ votes
2y
Ridge Lending offers a first position HELOC.
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Kelli Wilson
Lender · Indianapolis IN · Member since 2024 · 31 posts · 7 votes
2y
Merchants Bank of Indiana offers a 1st lien HELOC. Offered on primary, second homes and investment property.
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Kelli Wilson
Lender · Indianapolis IN · Member since 2024 · 31 posts · 7 votes
2y
Quote from @Kenneth Bentley:

Quote from @Nixon C.:

@Kenneth Bentley - Curious if you were able to find a lender to offer you a first lien HELOC on your rental property. I am thinking about doing the same. Hoping you or anyone else can offer some insight.
No sir, I didn't.

Check out Merchants Bank of Indiana - offer the 1st lien HELOC on primary, second homes and investment property across the country.
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Nixon C.
Rental Property Investor · Southern California · Member since 2023 · 39 posts · 11 votes
2y
Thanks Kelli, Ill check them out!
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