HELOC lenders 4 unit owner occupied in Chicago?

7 Replies

Wondering if anyone has any recommendations on where to get this specific type of loan. At this point, I don't care if it is interest only vs. prinical + interest. I own & live in a 4 unit in Chicago and it seems like 3-4 is problematic vs. a 1-2 unit HELOC. I applied at one bank where the branch mgr said they could do the loan but underwriting shot it down due to it being 4 units.

Not looking to refi at this point because I like my 3.5% 30 year rate.

Thanks!

Originally posted by @Matt Said :

Wondering if anyone has any recommendations on where to get this specific type of loan. At this point, I don't care if it is interest only vs. prinical + interest. I own & live in a 4 unit in Chicago and it seems like 3-4 is problematic vs. a 1-2 unit HELOC. I applied at one bank where the branch mgr said they could do the loan but underwriting shot it down due to it being 4 units.

Not looking to refi at this point because I like my 3.5% 30 year rate.

Thanks!

Hi @Matt - Try Huntington Bank - they have a lot of branches all over the Chicagoland area. They do limit the "combined loan to value" to 75%. So depending on how large you exiting loan is, it may/may not work. 

I have a contact there if you want her number, please LMK.

~Ashley

 

You have to play by their rules. For 1-2 they don't care about this yet 3-4 units have to be "self-sufficient". That means 75% of gross income must cover PITI.


I’m not a mortgage broker so someone please correct me if I’m mistaken or thinking of a different program. 

My HELOC for a 3-unit (I'm sure 4 should be okay too), is 95% CLTV with interest-only at prime+1, you're allowed to pay down the principal as well. 5 year draw period with 20 year repayment period.


They're called "First Financial Credit Union", you can google their name since I think links aren't allowed to be posted. Otherwise message me and I can intro you to the loan officer.

@Matt Said

@Matt Said I also use Huntington Bank for my primary. I know they recently loaned up to 100% on one of my client's three units in Berwyn. I would ask to see if they still have the 100% LTV HELOC!

I have also had a client use First Midwest bank. I belive they went up to 90% LTV.

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