Heloc and DSCR option
Hello everyone,
I am interested in pulling equity out of my investment property through a HELOC but some of the lenders and banks I spoke to state that no one offers HELOC's on investment properties. Does anyone know of any lenders/banks that offer investment HELOC's in California? Which leads to my second question if I cannot get the HELOC I am considering a DSCR loan, but curious if I could do a house hack with a DSCR loan?
First of all, there definitely are HELOCs on investment properties. Those banks do not know what they are talking about. You need to have a first mortgage, however, to do a HELOC on a property.
For the DSCR, what did you have in mind for house hacking?
There are HELOCs you can get, they are just much more strict about them now. Im not licensed in CA, otherwise Id help out!
I was also told this by my mortgage carrier. Located in alabama
Quote from @Ryan Muska:
First of all, there definitely are HELOCs on investment properties. Those banks do not know what they are talking about. You need to have a first mortgage, however, to do a HELOC on a property.
For the DSCR, what did you have in mind for house hacking?
Hello @Ryan Muska thanks for the reply. I do have a mortgage on what was originally my primary home two years ago. I turned this into a rental last year when I had to go back into the office full time. My next question is that it hasn't been paid down much but just to give you a quick breakdown the house has increased $80K over the last two years and was hoping to tap into that to use to help fund my next deal. I would like to get into a multi family home so I can house hack it. Which is why if I can't get the HELOC then I would be interested in a DSCR loan to be able to get into a multifamily and help with the mortgage.
For DSCR Loans, you cannot live in the property. That program is strictly for investment properties, not primary. That being said, you can use a primary home loan with rental income to subsidize it.
Quote from @Erick Arana:
Hello everyone,
I am interested in pulling equity out of my investment property through a HELOC but some of the lenders and banks I spoke to state that no one offers HELOC's on investment properties. Does anyone know of any lenders/banks that offer investment HELOC's in California? Which leads to my second question if I cannot get the HELOC I am considering a DSCR loan, but curious if I could do a house hack with a DSCR loan?
These folks all do HELOCs on investment properties in California, confirmed in the last couple weeks:
Better.com
Fremont Bank
BMO / Bank of the West