Los Angeles, CA 路 Member since 2021 路 17 posts 路 5 votes
Hello Everyone,
Its 2022, Ive searched recent forums here on BP that would be in relation with todays current market and my questions/cry for help.
I was almost "pass the finish line" today with obtaining a HELOC on my current rental that I have.... then the credit union realized it was a rental property after looking at my property's insurance declaration (SOLE PROP, VACTION RENTAL)馃槗 . I spoke with 5 smaller banks/credit unions, so far its a no-go on a Heloc. Any tips on getting a HELOC or using the equity in my home to purchase another property? I feel like Cash out refi don't make sense because I don't want to mess around with our current interest rate which is pretty good.
any advice would be great, maybe I'm missing something馃.
You just got caught in the big changeover. Fewer financial institutions want anything to do with investment HELOCs. Find a portfolio lender bank. They carry their paper and are more likely to find a program for you. The situation is even worse if you are in CA. I don't have any referrals for CA, the people I work with don't want to do business there.
There are some lenders that offer HELOCs on investment properties. I was in the process of doing the same but rates are higher (7% vs 4-5%). Most teaser rates you see for low introductory rates during the first 6-12 months are mostly for owner occupied only that I've found but would love to see what others are finding.
You just got caught in the big changeover. Fewer financial institutions want anything to do with investment HELOCs. Find a portfolio lender bank. They carry their paper and are more likely to find a program for you. The situation is even worse if you are in CA. I don't have any referrals for CA, the people I work with don't want to do business there.
Agree with William, I was able to find a great Portfolio loan and used my Primary Residence HELOC for the down payment. I used First Bank, great people!