Hi all,
I'm looking into lenders who offer HELOCs on rental properties. I have heard PenFed is the only national lender. I have also heard that an alternative method is to reach out to local lenders.
Has anyone worked with a lender that does HELOCs in California? Specifically San Diego.
Thanks!
The DTI percentage range varies by lender, and is less than what you will find for an owner occupied property, due to lender risk. While qualifying for a HELOC is dependent on your home equity and your credit score, good or excellent credit makes it easier to qualify. A good average to shoot for is 620 or higher. Plus, the better your credit score, the better your interest rate.
Ridge Lending All in One, first position HELOC
AFCU does 80% LTV on NOO. Utah
Americafirst 80% LTV on noo 65% LTV Utah
Arvest Bank AR, OK, AL, MO
Bank of Souther California
Bank of West (BNP Paribas) 60% LTV ELOCs
BB&T will loan on a rental portfolio
BBVA, now PNC
Bellwether NH and MA 85% to 100%, draw 10 yrs
BMO Harris, 3 HELOCs to 70% LTV
Boeing employee credit union
California: Cal Coast Credit Union and Fremont Bank
Citizens Bank -Minnesota, only in-state. Kyle Potswald
Citizens first position HELOC
CMG Financial 70% LTV
Consolidated CCU, high LTV NOO LOC, OR, WA
East West Bank, up to 60% LTV with "no docs" San Fran area
Figure 80% on a rental, not in LLC
FirstBank CO and AZ 75% LTV
First Florida Credit Union https://firstflorida.cumortgag...
First Commonwealth
First Midwest, up to 90% Chicago area
First Tech Federal. Wester states. Up to 80% if FICO is over 780, no appraisal under $250k value.
First Republic - California
Fulton Bank
GFA Federal Credit Union 10 yr draw, 10 yr repay, MA
Granite State CU, NH 90-100%
Great Lakes Credit Union
Hanscom FCU, Florida
HSBC 70%, for premier clients only
Horizon, Kalamazoo Michigan
Huntington 75% LTV 5 yr IO product available. Someone reported 80%…need confirmation
Hurst Lending and Insurance Investment property HELOC in Texas. No seasoning. Bridge, portfolio, foreign national and other specialty loan products.
Key Bank, FLorida flexible lender, HELOCs on second
homes and rental properties. 90% LTV on primary.
Merchants Bank MN See Pavel Ushakov
Mountain America Credit Union in Utah, Idaho, Montana, Nevada, Arizona, New Mexico. 85% LTV, promo rate of 1.99%. Can refinance an existing mortgage on investment property to a shorter term "Mini Mortgage."
Navy Federal 80% LTV
Norway Savings Bank, Maine
PenFed - max 3 other properties, including primary. 80% LTV, prime + 1%, <4 properties
Quorum Federal Credit Union 80% LTV, owned by LLC is OK. Very flexible lender. NY. Tiffany Mazzoccoli. 2021
Regions- yes HELOC but no LOC
River Bank & Trust, AL
SCCU Florida 70% LTV, 6.25% interest only, not LLC
SECU NC 65% LTV rate 2.75% Oct 2021
Signature Federal Credit Union 75% LTV
Silvergate Bank
Sound CU "non-owner occupied HELOC, capped at $150K and interest rates are prime + 2%, 3% or 4%, based on credit, not to exceed 70% ltv."
S&T Pennsylvania
TCF Bank
TD Bank 75% line with FICO about 740
TIAA Direct was EverBank
Torrey Pines Bank
Troy Bank & Trust, AL
Trustco
Union Bank, specializes in noo HELOC. KCMO, NE
Union Bank, MUFG.
Upstate Bank in Rochester NY, LOC up to 80%
US Bank 80%
Vectra Bank - Colo
Veritex, Texas HELOC
WellsFargo 60% LTV
Workers Credit Union, MA 80-100%
WSFS...up to 70% on rental
Zions Bank, Utah
@Jon Licht use PenFed
The DTI percentage range varies by lender, and is less than what you will find for an owner occupied property, due to lender risk. While qualifying for a HELOC is dependent on your home equity and your credit score, good or excellent credit makes it easier to qualify. A good average to shoot for is 620 or higher. Plus, the better your credit score, the better your interest rate.
Ridge Lending All in One, first position HELOC
AFCU does 80% LTV on NOO. Utah
Americafirst 80% LTV on noo 65% LTV Utah
Arvest Bank AR, OK, AL, MO
Bank of Souther California
Bank of West (BNP Paribas) 60% LTV ELOCs
BB&T will loan on a rental portfolio
BBVA, now PNC
Bellwether NH and MA 85% to 100%, draw 10 yrs
BMO Harris, 3 HELOCs to 70% LTV
Boeing employee credit union
California: Cal Coast Credit Union and Fremont Bank
Citizens Bank -Minnesota, only in-state. Kyle Potswald
Citizens first position HELOC
CMG Financial 70% LTV
Consolidated CCU, high LTV NOO LOC, OR, WA
East West Bank, up to 60% LTV with "no docs" San Fran area
Figure 80% on a rental, not in LLC
FirstBank CO and AZ 75% LTV
First Florida Credit Union https://firstflorida.cumortgag...
First Commonwealth
First Midwest, up to 90% Chicago area
First Tech Federal. Wester states. Up to 80% if FICO is over 780, no appraisal under $250k value.
First Republic - California
Fulton Bank
GFA Federal Credit Union 10 yr draw, 10 yr repay, MA
Granite State CU, NH 90-100%
Great Lakes Credit Union
Hanscom FCU, Florida
HSBC 70%, for premier clients only
Horizon, Kalamazoo Michigan
Huntington 75% LTV 5 yr IO product available. Someone reported 80%…need confirmation
Hurst Lending and Insurance Investment property HELOC in Texas. No seasoning. Bridge, portfolio, foreign national and other specialty loan products.
Key Bank, FLorida flexible lender, HELOCs on second
homes and rental properties. 90% LTV on primary.
Merchants Bank MN See Pavel Ushakov
Mountain America Credit Union in Utah, Idaho, Montana, Nevada, Arizona, New Mexico. 85% LTV, promo rate of 1.99%. Can refinance an existing mortgage on investment property to a shorter term "Mini Mortgage."
Navy Federal 80% LTV
Norway Savings Bank, Maine
PenFed - max 3 other properties, including primary. 80% LTV, prime + 1%, <4 properties
Quorum Federal Credit Union 80% LTV, owned by LLC is OK. Very flexible lender. NY. Tiffany Mazzoccoli. 2021
Regions- yes HELOC but no LOC
River Bank & Trust, AL
SCCU Florida 70% LTV, 6.25% interest only, not LLC
SECU NC 65% LTV rate 2.75% Oct 2021
Signature Federal Credit Union 75% LTV
Silvergate Bank
Sound CU "non-owner occupied HELOC, capped at $150K and interest rates are prime + 2%, 3% or 4%, based on credit, not to exceed 70% ltv."
S&T Pennsylvania
TCF Bank
TD Bank 75% line with FICO about 740
TIAA Direct was EverBank
Torrey Pines Bank
Troy Bank & Trust, AL
Trustco
Union Bank, specializes in noo HELOC. KCMO, NE
Union Bank, MUFG.
Upstate Bank in Rochester NY, LOC up to 80%
US Bank 80%
Vectra Bank - Colo
Veritex, Texas HELOC
WellsFargo 60% LTV
Workers Credit Union, MA 80-100%
WSFS...up to 70% on rental
Zions Bank, Utah
I'm a big proponent of 1st position Helocs, which is much different than a 2nd lien Heloc sitting in 1st position. Being designed to sit in first position, they have the staying power more similar to that of a traditional mortgage. Which means when the credit market tightens, it won't be frozen or converted to an amortized loan.
My wife and I have our investment property up in Temecula on a very specialized 1st position Heloc that's tied to zero balance sweep checking account. It allows us to park idle checking/savings funds on our balance, where they save us a great deal of interest. Whenever an investment opportunity arises, we simply write a check and put that equity to use. It's been a great tool for us, I always recommend it to anyone who qualifies!
I used PenFed for my last one and it was pretty simple. However, I will also note that when I was trying to refi another one of my homes, since the HELOC was not yet "seasoned" they assumed I would have to pay 1% of the total potential value of the HELOC per month, which almost put me in a worse rate bracket. They didn't season a normal mortgage I also did at the same time. So I would say be wary of using HELOCs at this moment if you plan on getting another loan anytime soon.
@Justin Phillips would you mind PMing me which lender you used for the 1st position HELOC?
@Jon Licht You bet, I'll shoot you a message now.
Update... the (4) below lenders offered a HELOC on my rental property in California. But, I can only own a maximum of (4) houses [I have 5]. I'm going to sell one of my smaller properties in the mid-west so that I can quality. Thanks for the feedback all!
Cal Coast Credit Union and Fremont Bank
PenFed
First Tech Federal
First Republic - California
Update... the (4) below lenders offered a HELOC on my rental property in California. But, I can only own a maximum of (4) houses [I have 5]. I'm going to sell one of my smaller properties in the mid-west so that I can quality. Thanks for the feedback all!
Cal Coast Credit Union and Fremont Bank
PenFed
First Tech Federal
First Republic - California
Why not do cashout refi instead?