HELOC or second on rental in SLC

14 Replies | Salt Lake City, Utah

Hello all - Anyone in Salt Lake have success finding a lender that will do a HELOC, or second mortgage, on a rental property (NOO)? At the moment I am unable to do one on my primary residence. Looking to tap into my equity in order to come up with a down payment for a second rental. Any advice would be greatly appreciated, thanks!

America First Credit Union is the only one I know of. They did a HELOC on one of my single family rentals at 80% LTV. There were almost no closing costs if you use the county property valuation as the value (it's a little lower than actual value), or you could pay the $500ish to get an actual appraisal. They had second mortgage options as well; I went for the HELOC due to the flexibility as I use the funds for flips and BRRRs.

Good luck!

We were not a fan of AFCU terms on a rental HELOC but have been very happy with ours from Pentagon Federal Credit Union, recommended to us two years ago by another BP member. Up to 80% on rentals with no seasoning. Underwriting took two months, but once closed it's been easy to work with with great terms. You can join PenFed CU by donating $20 to a military charity if you're not a vet or active duty.

@Dan Gustavson zions bank offers heloc's for rentals as well: 80% LTV, 10 yr draw period, interest only payments, then 20 yr payback. 4.8% + .94%. Apr. Less than $2000 closing costs.

@Allen - I haven't gone with anyone yet. I found out recently that I'm getting an all expenses paid trip to the Middle-East courtesy of the Army this spring. So I will wait until I get back to make any moves. I am leaning towards Mountain America CU, though. 

Originally posted by @Alipate Moleni :

@Emma Powell wondering what rates/terms does pentfed offer for heloc's on rentals?

It's all up in the air now! We got ours a year ago for 80% LTV and a little higher than prime, variable, with a 10yr draw. All the staff there are very well trained on this product, so just need to call and chat with a rep

@Emma Powell So yeah I did actually end up going with PenFed. I tried a couple other Banks but they offered the best rates and terms by far, got 80% LTV, prime plus 1.5. 10 yr draw. Thanks for mentioning them!

the have low limits on total properties owned, so we can't use them anymore, but they definitely have the best terms consistently

I stopped in today to get a HELOC at America First credit union, because I'm told they're still doing them and no one else is. They will do 80% LTV loans still on rental property. 6% loan I think is what she said. They go off the county tax records for value, which is stupid, so be prepared to get an appraisal on your dime.

I'm actually looking to do this soon here as well, excellent heads up on AFCU. We're targeting HELOC based on appraised value not county tax.

Tanner do you have any appraisers you would recommend or prefer?