I tried opening an equity line on my 4 bedroom san diego house and US Bank told me I could not because this house is a rental property. Is this true?
Does this mean I cannot refinance the house also because it is a rental property?
I don't know about a linke of equity, but you can certainly refinance a rental property. Refinance and take some money out - almost as good as an equity line.
Heloc, Eloc are a waste of money. Bouncing flucuation in interest rate monthly will kill your buzz of the low interest rates. You are better off refinancing rate/term or cash-out for a new property in Del Mar or Coronado and live life. If you would like to talk more about this I lived in San Diego for 20 years got kicked out and moved to Sacramento where I was told to grow up. Did, have college degree and 3/2 home and loving life. In the mortgage world almost anything is possible and yes you can get a heloc if you want on your rental property. Lets talk!
Your bank didn't "get it." I have all the products you'd ever need. I have a loan down in your neck of the woods right now.
Your bank, probably didn't like the LTV or something?
It doesn't matter that you have a rental property to get money out of it, it's a FICO/LTV issue. Most lenders still don't want you more than 80% LTV on a rental, but I have lenders that will go higher if you need.
Hope this helps!
You could also consider refinancing with a 620 fico can go 90% LTV NOO and at the same time get a HELOC, this will give you a much higher cash flow for additional properties.
As everyone is stating, I believe your bank a) didn't explain themselves properly or b) didn't think you have enough equity (based on probably a computerized appraisal or area comps) to justify the Equity line you were asking for.
You can always refi a rental property... or take out a HELOC - it is no different than your primary residence as long as the numbers check out.
While I have not tried I have heard a lot of lenders are not doing equity lines on investment properties - yes you can refi but a lot of lenders not doing the equity line.
But there is also a lot of info missing here - credit / LTV / DTI etc.....
Guys, check the dates. The original post is 4 years old.
I did both a refi and eq LOC on two of my properties in January. Took talking to a couple banks, local banks (all I called were small locals) and it was easy
Savannah, what did it take for you to get your refi done? What credit score will it take to refi? I have a 650 score and have a property under contract. I plan on doing lease option once rehab. I have buyers already for this property and they are willing to sign and place $5K down with 2yr option. I want to pay off the Hard money Lender with the refi. I am in the Seattle Wa. area.
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