1st Lien HELOC
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.
@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
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.
@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.
@Stacy Raskin The balance is 58k and it should appraisec for 150k.
@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.
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.
Ridge Lending offers a first position HELOC.
Merchants Bank of Indiana offers a 1st lien HELOC. Offered on primary, second homes and investment property.
Quote from @Kenneth Bentley:
Quote from @Nixon Corpuz:
@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.
Thanks Kelli, Ill check them out!