How do I get a HELOC in Chicago?

Question

I currently own a three-unit brick building in Avondale Chicago. I’ve completely renovated one unit and partially renovated/upgraded another. I currently owe $476,000 on it and it should appraise for $750,000+. At 75%, I could potentially pull out $85,000 or have access to a HELOC. I would definitely prefer the HELOC. My wife and I are also about to move out of this building so it will no longer be owner-occupied. The goal is to use a HELOC for my next investment. Should I just contact my local bank to see if I can get approval?

Jonathan Klemm · Answer

@Ryan Daniel Palmer - Awesome work!  Sounds like it's a great deal.  Make sure you get your HELOC before you move out, otherwise it is hard to get an investment line of credit.

You should link up with @Michael Barbari with first midwest they can go up to 90% LTV also, I know @Henry Lazerow was able to get a 95% LTV loan at First Financial Credit Union off of Peterson here in Chicago.

To answer your question from above, it doesn't matter if you move out after the fact you just technically need it to be your primary when you close on the loan.

Kerry Baird · Answer

Local community or credit union.  Also try PenFed or Quorum FCU.  Do it before you move out.

Mario Morales · Answer

Rookie thought here based on limited experience. I got a HELOC at a great rate and then all this happened. I am going through a cashout refi now to pay it back. I'm no expert here but I wonder, should I just have done a traditional cashout refi in the first place? Yes, it depends but I still question it, if you see yourself paying back, might as well go with a refi. Unless your not going to use all of it right away then you may be saving a bit. I'll take any feedback as well.

Henry Lazerow · Answer

First Financial and Quorum are the two that go to 95 LTV with good terms. For 90 theres a bunch. But as mentioned above get the HELOC before you move as once its non-owner occupant terms are awful.

Michael Barbari · Answer

@Jonathan Klemm Thanks for the TAG. Contrary to @John Warren you will have many issues getting a heloc on a rental as most banks do not do them. As Jonathan Klemm advised, get the heloc before you move. I've been doing helocs for clients for 16 years now and I'm an investor myself.

John Warren · Answer

@Ryan Daniel Palmer personally I would focus on getting the cash out refinance done first so you can get access to an owner occupant loan again if that is part of your game plan.

I have done the cash out refi/HELOC simultaneously as part of my first deal and it was exhausting! It is hard because the first loan has to be in place before you can get the HELOC.

I doubt you will run into any issues with your HELOC once you move out. There aren't really any triggers for the bank unless you start missing payments or something.

Ryan Daniel Palmer · Answer

@Kerry Baird @Dave Madoch @Victor So, I know most will want to close out your HELOC if they find you have moved out. Can you get away with moving out and not notifying them or is that frowned upon?

Victor So · Answer

As @Kerry Baird mentioned, the key is to do it before you move out because some banks will only do HELOCS for primary residences.

Kerry Baird · Answer

First Midwest will go up to 90%

Great Lakes CU does HELOCs

Dave Madoch · Answer

Huntington has a good HELOC program but I would not tell them you plan on moving out. They typically prefer owner occupied.

How do I get a HELOC in Chicago?

Most Popular Reply