Low/No Doc Heloc

9 Replies

I have a property that I'd like to get some equity out of via a HELOC. I purchased with cash, so I have 100% equity in the house (about $300,000).

How easy/hard would it be to get a low or no doc line of credit against the property?  Are such products even still available?  I'm curious to know what people's experiences have been dealing with various types of lending institutions as well.

@Evan Jarvis ,

I had a tough time finding lenders willing to do HELOCs on investment properties and even fewer that would do them without a first in place. It didn't make sense to me why they WANTED a senior lien to them, but that was definitely the case. I ended up at TD Bank who did the deal, but it was a full doc. They were pretty horrible to work with. It took over 90 days to get the HELOC done. Ridiculous. I'm also doing business in Fredericksburg/Stafford. I contacted a few of the smaller banks about business lines and they were very receptive. I just haven't taken it any further yet. They were

Eddy

Sorry, didn't finish my thought there.  Virginia Partner's Bank was willing to work with me.  I think the other was Carter Bank and Trust but not positive of that.

Eddy

Evan, what about just doing a 1st TD mortgage up to 70%LTV (if you've owned it longer than 12mos - or base it off Purchase Price if you bought it less than 12mos ago) under a No Doc product? I would believe the rate would be better than a HELOC anyway.

Robert, that's also a possibility, but I'm looking into doing some rather extensive rehab work as well, so the HELOC option appeals to me.

@Evan Jarvis I've done HELOCs on investment properties with both big banks and smaller portfolio banks.  Neither offered "no doc" options.  Haven't personally seen them offered anywhere either, and if they are it'd have to be very rare indeed.  It's hard enough just finding a lender who will do even the full doc kind on investment properties.

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