Investor · Wellington, CO · Member since 2017 · 79 posts · 30 votes
The title says it all! I have worked with Wells Fargo and Cornerstone lending so far but I want to work with a local bank for my next move. Does anyone have a good recommendation for a 'small' bank in Fort Collins, Colorado?
@Marshall Easlick what are you trying to do? Different banks do different types of deals. They have people who know and understand specific types of deals. If you bring a round peg to their square hole, you get a No.
Well, I have about $141,000 equity in my house and I want to pull it out to invest in property and pay off some private money that I used to help buy the house.
I've done a little research on it and it sounds like a HELOC is the best option but I'm not sure. I wanted some recommendations so I could make some phone calls and compare options.
@Marshall Easlick, There is a small community bank on Harmony Rd, close to Broadway. They are on the right hand side as you drive towards the mountains. I forget the name, sorry.
They advertise doing loans for non-warrantable condos, which means they don't sell their loans to Fannie and Freddie and therefore, have different lending rules. Definitely worth checking out.
Also, when I was looking for a HELOC, I found Belco credit union to have very competitive terms and rates. This was a year ago so the landscape might have changed but they are worth calling as well. Their web site has something on there about you having to be a Denver resident..or something to that effect but don't let that deter you. When I called them, they were willing to work around that requirement.
@Marshall Easlick around here Westerra CU is one of the best for primary residence HELOCs. Not sure if they are up your way but I'm sure if you shop around the local CUs you will find one similar.
@Marshall Easlick Try Blue Credit Union and First Bank. I've only done deals with the latter (which is Colorado-based), but know several who've had good service and rates with both for HELOCs specifically. Not sure about Blue, but First Bank is able to keep some of its loans in house (portfolio), allowing them more flexibility for outside-of-the-box deals.
@Jeff Zinsmeister, I am planning to pulling it out of my investment property if it would cashflow well enough after doing so. Why do you ask?
I wouldn't pull it out my primary residence because I used a VA loan, borrowed 100% LTV, I barely have any equity in it, and now my mortgage payment is too high. I work in the oil fields and if I were to lose my job, I would be house poor unless I rented out the the second bedroom. It's not the best financial position but it was the first mistake I made and I wouldn't use a VA loan again without a better plan.
@Steve Shafer and @Matt M., I checked out First Bank and the internet said that they are the largest privately owned bank in the U.S. I don't have much experience in real estate but, from what I have heard in podcasts and read on the forums here, it seems like I want an even smaller bank.
I will give Blue CU a call. Thanks, Steven.
@Bill S., do credit unions work with folks in different cities? ie would Westerra work with me if I live in Wellington and invest in Larimer County?
@Marshall Easlick Thank you for your service. I was a 12 B myself (Army). I love the VA product, and if I can help in any way there, please PM me.
I asked about the residence b/c your options for HELOCs and LTV decrease on investment properties verses primary residences. I know you have a lot of equity, but do you know your current loan to value on the property you are looking to finance? Once we have that, we can start looking at investors (we don't do HELOCs btw, but always looking to connect good people).