Credit unions that do lines of credit on investment properties in Utah?

14 Replies

Can anyone recommend a local credit union that does HELOC's with attractive rates up to 80% LTV, and will underwrite HELOCs on investment property as well as primary residence?

Thanks!

Aaron,

Unfortunately, I cannot give you any great advice on lenders. I wholesale a lot of multi family properties in Idaho and have checked with many lenders nationwide. The vast majority of them are only going to 70-75% LTV even on 2-4 units. I would suggest the Credit Unions like Mountain America and Goldenwest. Maybe even Washington Federal. Mountain America had a program of 90% LTV no seasoning refinance. They just took it way in the last few weeks. I don't know that a heloc will be any different. Lenders have been really tightening up. I did find an interesting lender that will do 80% LTV on residential (2-4 units) and commercial (5 units and up). His rate is not the best (6.25%) and charges 2 points. It is basically a stated income loan. Credit score about 650 and the loan amount has to be $300K or more. However, he will allow you to bundle several properties together to get to that amount. Again, I don't think he will do helocs. If you find anyone that is doing 80%LTV will you please let me know. Thanks!

I wonder if a lot of credit unions are suddenly bearish about 2016, and are trying to discourage investors from tapping out equity?

Strange that they'll let you tap out 100% of your equity in your primary home to buy a worthless RV, but not 80% in your investment property to buy another cash-flowing investment property with solid numbers!

Hi @Aaron Knoll ,

I was doing a lot of research with local banks on the same subject for a property in Nevada. I was looking more for Equity Loan (for a fixed amount) and I found this one that covers Utah as well:

America First Credit Union. They will do a 10y (both loan term and amortization) home equity loan up to 65% LTV at 4.99%. They also told me that they may be talked into going off appraisal without seasoning requirements, but the person didn't seem 100% sure.

From memory I think they may also have pitched a HELOC, but I didn't write down the details on that.

Jean

Originally posted by @Jeff Rappaport :

Aaron,

Thanks Jeff. What is "no seasoning"? I actually inquired at macu. They said they would do it, but wanted me to have a full year of rental and tax return before they'd fund. Does everyone require that? Makes it pretty hard to expand fast with helocs. 

Aaron,

Seasoning refers to the amount of time you actually own the property.  I typically wholesale properties to other investors and ask them to pay cash.  That may be their own cash or borrowed funds.  If the investor wants to pull the majority of the funds back out of the deal or pay off their private or hard money they will want to refinance the property fairly quickly.  Most lenders want 90-180 days of seasoning (where the person who is applying for the loan has actually owned the property).  Some may want as much as a year.  Mountain America was doing a no seasoned refinance which means you could buy a property and immediately start a refinance after you close.  

@Aaron Knoll I don't have a credit union reference for you but I do like working with Zions. They will bundle all of your rentals into one HELOC with no upfront costs and a low variable rate. I believe they will do 65% of the appraised value.

@Jeff Rappaport Please add me to your buyers list. I like to buy in Idaho.  

Originally posted by @Jean G. :

Thanks very much Jean G, I looked into America first but they didn't have rates on their website. I'll go check them out on Monday!

I use Goldenwest for my HELOC and have had great luck with them. I have a name and number for a great guy there who doesn't just tell you "no" right off the bat and he dives in and tries to make your plans work. If you would like his contact info send me a message and I would be happy to get it to you.

I don't know if there is a big difference between a standard loan and HELOC, but I had trouble finding a credit union or bank which offered a HELOC on an investment property. For anyone looking, I can say I'm about to open a HELOC with Zion Bank on a townhouse I own for up to 75% LTV. I did try asking at credit unions like AFCU and MACU along with US Bank and Wells Fargo which I had heard did them without success. Hope this helps someone.

Originally posted by @Patrick O'Shea :

I don't know if there is a big difference between a standard loan and HELOC, but I had trouble finding a credit union or bank which offered a HELOC on an investment property. For anyone looking, I can say I'm about to open a HELOC with Zion Bank on a townhouse I own for up to 75% LTV. I did try asking at credit unions like AFCU and MACU along with US Bank and Wells Fargo which I had heard did them without success. Hope this helps someone.

Curious how everything went with Zion's on your rental property HELOC. Good experience? If so, can you recommend the individual and contact info?

@Don Hampton , it didn't work out so good for me. I'm in the Pittsburgh area now and I was required to come into the Zion's office to do the closing. I didn't know that at the onset so I chose to walk away. Tom Kewell was the Branch Manager at Copper Hills Financial Center. DM me if you want his phone number.

Patrick, AFCU is great, I'm no longer in the Salt Lake market but they were my lender when I was there. As far as a HELOC, they probably won't give you a line if they're not in first position on the debt. It's rare and given your relationship they may but if you're just opening up a relationship with them, then it'll be tough to get a line. Good luck!
Nik

@Jeff Rappaport Maybe you've already heard about this option, but AFCU will do 80% ltv heloc on investment properties. Variable interest rate, best you'll get is around 5% rate these days. Minimum monthly payment is 1.25% of outstanding balance or $50, whatever is greater. That min % is a kicker, but if you can pay it off quick, it's not too bad. That's the highest percentage investment property HELOC I'm seeing in Utah.

PenFed will also work in utah, and they do 80% as well. But they will only work with you on investment properties if you have 3 or less properties total.

I recently have been going through the HELOC process with America First Credit Union. They would do 80% on investment but I had to pay for the appraisal and they wanted me to show a lot of income.

Join the Largest Real Estate Investing Community

Basic membership is free, forever.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.