I'm a new real estate Investor currently doing a live-in flip. I'm looking to get a home equity line of credit to finish the rehab. To limit massive amounts of cold calls and waiting on hold with numerous banks, Does anyone in the San Antonio (78209) area know of local banks that offer home equity line of credit? I am also interested in what the bank would expect from me to acquire a HELOC. I.E. would I have to get a separate appraisal done?
A little background on me, I'm currently in the Air Force. I purchased the home for 289K and the county tax appraiser for 2016 appraised my house before any renovations at 400k. I would be looking for a 50k line of credit, I am also open to other suggestions for creative financing.
If there is existing literature on this please provide a link so I can educate myself.
Thank you, Matt
I'm not in Texas so I don't know if you have this bank or not. Currently, I'm using a heloc that I got from BNC bank. BNC just got bought out so it is now part of Pinnacle bank. It was a very easy process and they used an electronic appraisal, which was a tad lower than the regular appraisal amount. Also, the interest rate was only 2% if I agreed to also open a free checking account, so I did that as well. I already have the house under contract and am closing in less than 2 weeks and will pay off the heloc then.
I'd also recommend checking with who you have your mortgage listed or any big banks as well. Most banks run specials on these type of loans. Good luck!
@Matthew Dave. I've been very happy with HELOC from USAA. Depending on when you need the proceeds, there are some changes to the Texas HELOC Laws being considered on the upcoming November ballot. Sorry, I'm not able to elaborate further on the expected changes, but revolves around allowing you to utilize a Larger Share of the Existing Equity in a property via a HELOC.
Thank you both for your timely responses I really appreciate it. I will have to look into both suggested banks as well as the bank I hold this mortgage with.
Jim, I currently bank with USAA and familiar with their great reputation. I understand why you cannot discuss the details about the changes, but would you be able to tell me if it would be in my best interest to acquire a HELOC through USAA now or after the expected changes? I'm in no rush and could hold out until November if the changes would be advantageous.
Jim, disregard my last post, I misread your response initially and now realize what you were saying about the expected changes. I will wait until November before comparing HELOCs.
Ok, I would like to give everyone an update. USAA was not doing any HELOC loans period at the time. However, Navy Federal was offering HELOC for primary residences and for investment properties. 90% of home value for primary residence and 70% of home value for investment properties. I went with a 70% of an investment property I own, the whole process took about a month and about $800.00 in closing cost to include a $400.00 appraisal. Thanks again for all your help.
I'm in a similar boat. A little about myself: I'm a new REI based in CA, interested in out of state properties. I'm applying for a personal unsecured line of credit but the banker at City National Bank is recommending HELOC due to the lower rate of interest. Have any of you experienced anything bad with unsecured personal lines of credit? Do you hold your investments in an LLC? If so, do you apply for a business line of credit? Appreciate some advise from the gurus as I seem to be chasing my tail here.