Investor · Puyallup, WA · Member since 2016 · 14 posts · 5 votes
hello biggerpockets community, I am looking for information regarding Heloc's on rental properties.
Who offers them?
Pitfalls I should be aware of?
Helocs vs cash out refinance?
I own property outright have a solid tenant and I have equity sitting there staring me in the face daring me to use it somewhere else. I am looking for options that do not require selling my unit.
hello biggerpockets community, I am looking for information regarding Heloc's on rental properties.
Who offers them?
Pitfalls I should be aware of?
Helocs vs cash out refinance?
I own property outright have a solid tenant and I have equity sitting there staring me in the face daring me to use it somewhere else. I am looking for options that do not require selling my unit.
Any heloc specialists here?
Many thanks in advance.
Hi Dan-
I got my HELOC from Regions Bank - if they have one in your area it may be worth a conversation with them. They do offer on rental investment properties.
My experience with them has been very good. Of all the lenders I don't see anything different too much in what they offer. The biggest thing was the option of getting it on a rental versus primary. They have the usual 10 yr draw p&i or just interest - they paid for closing costs and appraisal. They issued a card that is used like credit card. I get a statement every month even if there is no balance - regulations.
hello biggerpockets community, I am looking for information regarding Heloc's on rental properties.
Who offers them?
Pitfalls I should be aware of?
Helocs vs cash out refinance?
I own property outright have a solid tenant and I have equity sitting there staring me in the face daring me to use it somewhere else. I am looking for options that do not require selling my unit.
Any heloc specialists here?
Many thanks in advance.
Hi Dan-
I got my HELOC from Regions Bank - if they have one in your area it may be worth a conversation with them. They do offer on rental investment properties.
My experience with them has been very good. Of all the lenders I don't see anything different too much in what they offer. The biggest thing was the option of getting it on a rental versus primary. They have the usual 10 yr draw p&i or just interest - they paid for closing costs and appraisal. They issued a card that is used like credit card. I get a statement every month even if there is no balance - regulations.
Wells Fargo does them too, but they can be a nightmare to work with. Investment HELOCs are not as easy to come by anymore because most people are much more willing to let their investments go for non payment than they are a primary residence. It's a much higher risk for the banks.
hello biggerpockets community, I am looking for information regarding Heloc's on rental properties.
Who offers them?
Pitfalls I should be aware of?
Helocs vs cash out refinance?
I own property outright have a solid tenant and I have equity sitting there staring me in the face daring me to use it somewhere else. I am looking for options that do not require selling my unit.
Any heloc specialists here?
Many thanks in advance.
HI Dan,
In each area the providers for non owner occupied HELOC's varies its usually the smaller community banks or credit unions who offer these.
In the offshoot chance its a bigger player like wells fargo it will be around 60% LTV and the rates are pretty high I hear around 6.50% - 8.00%.
Since I noticed you're practically down the street from me you can go to:
- BECU - 70% HELOC's on 1-4 non owner properties and they will often pay for your appraisal and closing costs
- Red Canoe CU - 80% LTV term loan or line of credit but will change 1 pt + closing/escrow/title/etc
- Timberland Bank - will go up to 75% with 1 pt
- Sound Banking Co out of lakewood will go up to 75% with 1 pt
- Penfed CU - will go up to 80% LTV HELOC no points but you'll have to pay your own closing costs and appraisal
@Daria B. Hello. What was the LTV on the rental HELCO
It was 80% and we did it on my primary because they did not have full banking presence in the city my rental is in, which still worked out. Had they been set up for full banking I would definitely have gone with rental.