Banks offering HELOC on Investment Property in NoVA

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Banks offering HELOC on Investment Property in NoVA

Paul Ellington
Leesburg, VA · Member since 2019 · 34 posts · 19 votes

I'm looking in to getting a HELOC on my investment property and was wondering if anyone from Loudoun/Fairfax County had experience with this. I've heard it can be difficult to find a bank willing to do a HELOC on an investment property and was hoping someone would be able to tell me where they've had luck in the past. Thanks!

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Trevor Aydelott
High Desert, CA · Member since 2019 · 319 posts · 161 votes
6y

@Paul Ellington

There are banks that do HELOCS on investment properties. It is really late where I'm at and I don't have information in front of me. But I do know personally there are banks and have talked to them. 

Start by calling quicken mortgage. And look up TD Bank. But just type in HELOCs investment properties in google and start calling. 

And don't listen to people that just say thing like hey they probably stopped without knowing any information. Actually banks are lending and are considered essential, just like realtors. So don't take a NO for an answer. 

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  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    6y

    If there were any lenders doing this, they probably stopped oh within the last week or two.

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  • Trevor Aydelott
    High Desert, CA · Member since 2019 · 319 posts · 161 votes
    6y

    @Paul Ellington

    There are banks that do HELOCS on investment properties. It is really late where I'm at and I don't have information in front of me. But I do know personally there are banks and have talked to them. 

    Start by calling quicken mortgage. And look up TD Bank. But just type in HELOCs investment properties in google and start calling. 

    And don't listen to people that just say thing like hey they probably stopped without knowing any information. Actually banks are lending and are considered essential, just like realtors. So don't take a NO for an answer. 

    2Reply
  • Trevor Aydelott
    High Desert, CA · Member since 2019 · 319 posts · 161 votes
    6y

    I have been building a lender file for some time now, for my investing needs. I my search, I have found that these lenders do investment property HELOCs.

    Trustco

    US Bank

    TD Bank

    PenFed

    Union Bank, specializes in noo HELOC

    Arvest Bank

    Got the information for you. Just give them a call and figure it out. Look at interest rate and terms. It should not cost you money to do it. You got this. 

    2Reply
  • Paul Ellington
    OP
    Leesburg, VA · Member since 2019 · 34 posts · 19 votes
    6y

    @Trevor Aydelott thank you so much for the response and information! I am still unsure as to how banks are going to respond given the current situation but as you said it costs nothing to try. I'm hoping to find a bank willing to open a HELOC just so I'm positioned if an opportunity presents itself. Again thank you for the positive response.

    1Reply
  • Trevor Aydelott
    High Desert, CA · Member since 2019 · 319 posts · 161 votes
    6y

    @Paul Ellington

    The reason why I'm doing a cash out refinance ( BRRRR) on my investment property in Colorado. Because there are deals everywhere and I'm sure more will come up.

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  • Paul Ellington
    OP
    Leesburg, VA · Member since 2019 · 34 posts · 19 votes
    6y

    Thanks again @Trevor Aydelott I was able to find a couple banks willing to do HELOCs on investment properties and have more I can call if I decide I don't like the terms from TD Bank and Penfed.  Just goes to show you shouldn't listen to to people telling you it can't be done @Russell Brazil.  Find a way to make it happen and explore all options. 

    2Reply
  • Trevor Aydelott
    High Desert, CA · Member since 2019 · 319 posts · 161 votes
    6y

    Yup @Paul Ellington those are two banks I would've recommended. And so true, I'm tired of hearing people say you can't do this or that. Like go find out for yourself. A lot of these people have not looked into it or turned away from the first no they heard. 

    2Reply
  • Trevor Aydelott
    High Desert, CA · Member since 2019 · 319 posts · 161 votes
    6y

    Whoops those are banks I did recommend. lol

    1Reply
  • Joseph Agins
    Rental Property Investor · Houston, TX · Member since 2015 · 52 posts · 28 votes
    6y

    @Trevor Aydelott Great info!

    0Reply
  • Paul Ellington
    OP
    Leesburg, VA · Member since 2019 · 34 posts · 19 votes
    6y

    Update: @Trevor Aydelott we just closed on our HELOC on the investment property with Penfed. Thank you so much for helping me get the ball rolling. 4.75% interest only payments on a rental property HELOC was a lot better than I originally thought would be possible. Just wanted to say thank you again for the help at the beginning.

    0Reply
  • Brian G.
    Rental Property Investor · Los Angeles, CA · Member since 2013 · 1k+ posts · 1k+ votes
    6y
    Originally posted by @Paul Ellington:

    Update: @Trevor Aydelott we just closed on our HELOC on the investment property with Penfed. Thank you so much for helping me get the ball rolling. 4.75% interest only payments on a rental property HELOC was a lot better than I originally thought would be possible. Just wanted to say thank you again for the help at the beginning.

    Congrats. Is it now prime + 1.5% for a Heloc on an investment property through Pen Fed?

    0Reply
  • Paul Ellington
    OP
    Leesburg, VA · Member since 2019 · 34 posts · 19 votes
    6y

    Hi @Brian G.. That's exactly right, Prime +1.5% for an investment property HELOC. 10 year draw period with interest only payments and a 20 year repayment so pretty standard otherwise. There is a $99 annual fee if you don't accrue $99 in interest on the loan that year but it is waived if you pay at least that much in interest over the year. They also paid closing which was nice so it only cost me the local tax fees ($88) to open it when it was all said and done. Now I'm working on refinancing my primary residence and getting pre-approved for an investment property purchase. Depending on the appraisal for my primary we might open a HELOC on my primary as well just to maximize our access to capital.

    0Reply
  • Trevor Aydelott
    High Desert, CA · Member since 2019 · 319 posts · 161 votes
    6y

    That's awesome @Paul Ellington

    Yeah a lot of banks are not doing NOO HELOCS during this Covid 19 crap.

    I found a bank that does it in Colorado, but only a 50K maximum. But I think HELOCS are amazing. 

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