How to change Heloc to a first position?

4 Replies

Originally posted by @William Ika :
I have a $50,000 Heloc on my house but it is valued at $300,000 with $133,000 in equity. Any suggestions on increasing the Heloc amount?

Not enough info to know. First, ask the HELOC provider if they will increase the HELOC amount. If your income and credit support it, they will probably increase the amount.

It appears you have about 56% LTV (banks lend on LTV, not available equity) Most banks will go to 65% or 70% of the $300,000 value (they will have an appraisal done) Call a local Credit Union or Bank and ask if they will do a HELOC for the amount you are requesting.

Is this a primary? If so, most banks will go to 85-95% LTV; however, most will have some type of cap. If it's an investment property, there are only a few national / regional banks that will provide HELOCS (e.g., PENFEN, Navy Federal), the LTV is generally 65 - 80%, and the caps will be lower. For instance, I just got approved by Navy Fed on a rental at a max of $100k even though I have over 150k in equity. It just depends on the bank. You may have more luck shopping around smaller, local banks.