HELOC on owner-occupied duplex??

Question

Hi all, my husband and I are looking into doing a HELOC on our current owner-occupied duplex (we live in one side) to help fund a down payment on another duplex. Does anyone know a local credit union or bank that will fund a HELOC on an owner occupied duplex? I've called Amplify Credit Union, UFCU, A+ Fed Credit Union, Velocity and RBFCU - RBFCU will do it but the amount that they need for an appraisal exceeds the 2% of our available loan amount, so that's against the law. All the rest won't fund a HELOC on anything other than a single family. Anyone have any ideas?

Allison Stewart · Answer

@Eddie Garcia yes, we ended up doing a Home Equity Loan with PenFed as opposed to the HELOC. It suited our needs better. It was pretty straight-forward actually - not hard at all. We just applied, we had to pay for an appraisal (which we knew we would have to do), and they approved us for the amount we wanted. Took maybe a month - but it would be quicker without the appraisal.

Danny Webber · Answer

Helocs are nice because you can take out or put back as needed vs doing a Texas Cashout A6 which stays on your title forever.

Mixed bag of nuts but the other thing is that it is typically not a great idea to draw equity from your personal residence if you can avoid it.

Can the property go private to RT Refi?

Allison Stewart · Answer

@Joe Scaparra, thanks for the tip on PenFed! They will do equity loans for duplexes - and they will do both occupied and unoccupied, with a LTV of 90% as well. Lots of options there! $17 join fee for a membership to a military non-profit.

@Tim C., the current interest rate for the 5/5 HELOC that Joe references is 5.25 for owner occupied (75% LTV) according to their website. They will do one for a non-owner occupied property at 70% LTV for 6.75 APR.

Joe Scaparra · Answer

Penfed credit union will do it.  I have a HELOC with them and it is a locked in rate for 5 years.  Any military experience and you qualify or you just tell them you have or will donate any amount to the Red Cross and your eligible.

Eddie Garcia · Answer

@Allison Stewart, were you able to successfully secure the Home Equity Loan with PenFed? I'm in the same situation, trying to get a home equity loan on my owner-occupied duplex for some debt consolidation.  Any suggestions or details on your experience are greatly appreciated.

Joe Scaparra · Answer

I got mine for my personal residence, because I have over 4 investment properties, so I did not qualify for the investment HELOC but did for my personal residence.  I don't think the rate would've been different.  I have had my HELOC for about 9 months.  I think the rate is 4.75 locked for 5 years and can adjust every 5 years.

Tim C. · Answer

@Joe Scaparra

Do you mind sharing the locked fixed rate? Also, is this for a non owner occupied Property?

Tim C. · Answer

Might want to try BBVA Compass.

Alex G. · Answer

My understanding is that private cash out refi on a homestead property would be illegal in Texas. The only legal cash out refi is a constitutional HE loan that is heavily regulated. Both the originator and the lender (actual lienholder) must be appropriately licensed.

Tom Nguyen · Answer

Try Penfed or wells fargo.

HELOC on owner-occupied duplex??

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