Bank Recommendations for Investment Property HELOC

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Bank Recommendations for Investment Property HELOC

Dairol Matos
Member since 2019 · 2 posts · 1 vote

Hello,

Does anybody has recommendations for banks offering HELOC on Investment properties? I have a multifamily property in NJ with great equity. I have been shopping for a HELOC to renovate one of the two apartments to get more cash flow. However, it has been difficult to find a bank offering HELOC on investment properties. I reached out to local small banks, Flag Star Bank, Churchill Mortgage, PNC Bank, PenFed Credit Union, and others. So far, the only bank I have found offering HELOC on investment properties is TD Bank.

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  • John O'LearyPro Member
    Lender · Winter Park, FL · Member since 2021 · 737 posts · 412 votes
    2y

    Hey Dairol,

    The majority of HELOCs are taken out against primary residences. Lenders are more comfortable with a loan against the actual roof over your head because they know you'll prioritize repaying that loan. However, some lenders might offer a HELOC type product. You could use a DSCR loan to cash out of an investment property to access the equity to rehab the units. Plenty of good lenders here on BP that offer DSCR loans.

    [email protected]800-663-4122
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  • Dairol Matos
    OP
    Member since 2019 · 2 posts · 1 vote
    2y
    Quote from @John O'Leary:

    Hey Dairol,

    The majority of HELOCs are taken out against primary residences. Lenders are more comfortable with a loan against the actual roof over your head because they know you'll prioritize repaying that loan. However, some lenders might offer a HELOC type product. You could use a DSCR loan to cash out of an investment property to access the equity to rehab the units. Plenty of good lenders here on BP that offer DSCR loans.


     Thank you John! I appreciate your Feedback and will look into this option to learn more about it.

    1Reply
  • Austin ClarenceBusiness Member
    Lender · Phoenix, AZ · Member since 2023 · 135 posts · 31 votes
    2y

    There are a lot of HELOC options for investment properties, but I think the issue is the HELOC being accepted on the specific subject property? Is it an actual apartment or 4 units or under?

    [email protected]650-906-2376
    Austin Clarence with NEXA Mortgage551 Reviews
    View Page
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  • Jacob Sherman
    12 Penns Trail Suite 138 Newtown, PA 18940 · Member since 2023 · 1k+ posts · 319 votes
    2y

    your best bet is going to be a non qm product . it goes upto 85% 

    0Reply
  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    2y
    Quote from @Dairol Matos:

    Hello,

    Does anybody has recommendations for banks offering HELOC on Investment properties? I have a multifamily property in NJ with great equity. I have been shopping for a HELOC to renovate one of the two apartments to get more cash flow. However, it has been difficult to find a bank offering HELOC on investment properties. I reached out to local small banks, Flag Star Bank, Churchill Mortgage, PNC Bank, PenFed Credit Union, and others. So far, the only bank I have found offering HELOC on investment properties is TD Bank.


     Hey Dairol, 

    You may want to work with a local mortgage broker that is signed up with UWM. They offer HELOCs for 1-4 at 70%CLTV

    There are also DSCR seconds available for investment properties if you cannot qualify traditionally

    [email protected]818-269-7983
    LuxePrivate Investments LLC 572 Reviews
    WebsiteView Page
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  • Tracey Watler
    Lender · NYC, NJ · Member since 2022 · 13 posts · 3 votes
    2y

    I work with the bank mentioned UWM. Feel free to reach out about your scenario so I could be of further assistance.  

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