Investor · Charlotte, NC · Member since 2020 · 4 posts · 2 votes
Hello - I purchased a duplex late last summer and have invested significant equity in the project. I refinanced my initial mortgage in April (no cash out) due to the lower rates, and my new appraisal came in significantly higher than my purchase price (16%, or $66k). I am trying to get a HELOC to unlock some of that equity for more repairs. I heard from one lender than their HELOC would be capped at 85% LTV based on purchase price for the first 12 months after closing. In other words, they would not honor the "value" of a new appraisal until a year after closing.
Does anyone know of any banks, credit unions, etc. that will perform a reappraisal after less than a year for a HELOC? I heard a BP podcast from a few years ago where someone found a bank willing to do this. In a worst case scenario I could wait until a year passes, but it would be nice to continue to get some renovations done before then.
Investor · Boise, ID · Member since 2014 · 3k+ posts · 3k+ votes
6y
There are several banks that will do that- HELOCS are portfolio loans, so they are't subject to the standard terms that you get from all of the fed backed loans. This means that every bank decides what terms they want for their HELOC and every bank will have totally different programs- or none at all. The lender that told you HELOCs are capped at 85% LTV was only speaking about his bank's in house policy.
Bank of the West out here in the west has a bunch of HELOC programs- they go up to at least 95% LTV, maybe even 100%. Chances are you'll just need to make a lot of phone calls. Your best bet is to skip the big banks and call regional banks and local credit unions, they are much more likely to have more flexible terms and products.
Hello - I purchased a duplex late last summer and have invested significant equity in the project. I refinanced my initial mortgage in April (no cash out) due to the lower rates, and my new appraisal came in significantly higher than my purchase price (16%, or $66k). I am trying to get a HELOC to unlock some of that equity for more repairs. I heard from one lender than their HELOC would be capped at 85% LTV based on purchase price for the first 12 months after closing. In other words, they would not honor the "value" of a new appraisal until a year after closing.
Does anyone know of any banks, credit unions, etc. that will perform a reappraisal after less than a year for a HELOC? I heard a BP podcast from a few years ago where someone found a bank willing to do this. In a worst case scenario I could wait until a year passes, but it would be nice to continue to get some renovations done before then.
@Kyle Leygraaf - If you purchased it last summer and you have increased its value, just go after the HELOC now. I have never heard of any bank requiring you to wait a year for getting a HELOC. The only thing banks asked me is if my DTI is low enough and if the equity in my house is high enough that I can borrow money in the first place.
Banks are tricky sometimes, I would do what the guy above mentioned and make a lot of calls. Get a list of a dozen banks in your area and call them all until 1 can help you.