All Forum Posts by: Kerry Baird

Call around to your local community banks.  You will have ownership and your name is on the deed…so that part is good.  Call around and ask.

I don’t like those rates at all, not for a variable interest rate.

Navy also has a very long draw period, and long repayment period. This is not typical in the HELOC space.

This can’t be answered in a vacuum.  You need counsel specific to your situation.  

I don’t see the sense in paying off my own house at presumably low interest rates, and exchanging that for a higher rate, variable interest line…unless I have a really good plan for not losing my house.  

I like Navy Federal for its long draw period and long repayment period. Navy offers an interest only mortgage, if that is of value to you. Rates are in a similar place for their investment HELOC product.

@Gerardo Fonseca Jr, if you live on the property you will find it easier to get financing.  I would pull my own credit and call the local lenders, and ask them what terms are available on a 3 unit owner occupied residence, with a FICO score of ###

I'd be surprised if you can find a HELOC provider that would lend over a half a million of adjustable rate funds in second position, as the risk is high to both parties. Figure won't go up that high, but $400k when I last applied with them. Navy will go up to $500,000 and advertises a rate "as low as" 8.75% with a 20 year draw and 20 year repayment period. Look at small, local community banks and credit unions near the property,

HSBC, Signature FCU, Navy FCU

Even when I have a lot of equity, if my DTI is too high (over 60%) then I have found that I am denied HELOC approval. DTI has been my nemesis. Each lender has their own standards or parameters, such as draw period, FICO required, whether it is interest only or principal and interest, whether you can lock a portion of the HELOC or it is all floating interest rate, etc. I like small local community banks and credit unions more than big banks.

@Deepak Malhotra and @Pat Heidingsfelder
Can you please give some data points? What DTI do they go up to, do you have to make a big draw, what is the length of time you can draw and the length of time to pay back? What do they need for the LLC? Operating Agreement is probable, but do they need tax returns?

I just discovered they operate in Florida and Texas, where we have properties, so I am very interested in using them.  Thank you!