Looking for Lenders for Second Mortgage on Investment Property
Dear Fellow Investors,
I am looking to cash out some equity from my investment properties for further investing.
One of the property has around 50% in equity (~675K) and would like to do a secondary mortgage (Home Equity Loan) on it.
Could you please let me know if there are any good Banks/ Lenders that can do secondary mortgages on an investment properties?
Thanks in Advance
-S
Note: I can't do a cash out refi on my primary loan as my interest rate on it is 2.625% 30 yrs fixed loan. Also not interested in HELOCS as they are floating and has high interest rates.
Most Popular Reply
Hi Satya, you do have a few options - HELOC is probably not going to be one of them on an investment property. You can do a HELOAN, which is a 2nd, but it is closed-ended, meaning you can't draw against it repeatedly the way you do a HELOC. Its possible there are still lenders out there offerring HELOC for investment property, they are few and far between.
DSCR cash-out is not a bad option, unless you have a really great rate you hate to refi out of (i get it).
I do have one lender that will do DSCR for a HELOAN as well (2nd lien position on investment property), that could be a better fit than a cash-out refi. You also could try private money or hard money 2nds to avoid the income / DTI calculation and still get a 2nd mortgage, but that will come at a hefty price tag.
Let us know if you find a HELOC option for investment property, i for one would LOVE to be able to offer it to my clients, they're simply non-existent at the moment from what i've seen.