All Forum Posts by: Zach Bosson

Quote from @Stephanie N.:

You can't do a HELOC on an investment property, For that reason, if you're house hacking, it's always better to get the HELOC before you move out of the property.

One suggestion for future financing, look into Bank on Yourself policies. It's a great way to build a cash vehicle that you can tap into at any time and the money will continue to grow for you even while you're accessing it. It has much lower interest rates than a HELOC and comes with some additional unique benefits. I have personally used these policies to fund investments and renovations. Full disclosure, I am a Bank on Yourself Professional and would be happy to tell you more about it and determine if it is right for your situation.

Hey Stephanie, 

Although rare there are HELOCs available for Non Owner Occupied investment properties(NOO), we write them all the time at Lower.com.

2 points of consideration 

(1) Usually the Loan To Value you can borrow is slightly lower on a NOO.

(2) If you do take it out on a primary you want to make sure you intend to own and occupy for 12 months

Quote from @Kelly Jenkins:

Zach- BUT do you have to refinance mortgage to get HELOC

Hi! Yes! We offer "standalone" HELOCs, HELOCs that do not require a refinance in addition to that special 95% product that does require a refi.

Hey Tanner!

Congrats on a great investment, being able to rent the upstairs and cash flow your current home is great!

Your concern is a good one, buying in this market at high rates = high payments and you may not cashflow if you were to repeat the process.

However, 2 considerations.
(1) By not doing it you don't have 800-1000 in your pocket, so although the payment on the new place might be higher than in a normal market you've got extra funds to cover it.

(2) Your new rate is not forever, perhaps in this high rate market, it's as you say, best case you're breaking even if you repeat this process. But in say 2-5 years when rates drop and you refinance into a lower rate, then you're cash flowing! Obviously that's not guaranteed, but experts figure it's likely.

I would be happy to PreQualify and talk shop - personally I'm on home #4 doing the exact strategy you outlined, home #5 incoming, rates aren't slowing me down.

Quote from @Rose Jones:

Thanks Roberto R - It just felt like such a slap. I think this blow puts me too low for a Heloc which is frustrating.

Hey Rose! Sorry to hear about your score dropping. Credit seems so unfair, it's some mystery algorithm that impacts our life so significantly, oh and they can sell our data, and ++we're required to use it to operate in society!

Good news - you didn't say just how low it dropped, but we do offer HELOCs down to 640 credit score, I'd be happy to take a look. Link in my signature for a free look. (and we do a soft credit pull, so no more damage to that score :) ) 

Shopping is free! And most lenders are doing soft credit pulls so you're only spending time to try and find the best deal/right fit.

National lenders with digital applications allow you to quickly check terms (like us)

Local lenders will likely require a bit more leg work.

I'd argue that both HELOCs and CES have good utilization for both short/long term plays. We offer both from a variety of outlets(and on investment properties which is rare), here's some examples of how recent clients have used a CES/HELOC for both long and short term purposes.

That all said, for your purposes I'd want to dive deeper into your plans to repay before advising one way or another. I personally use my HELOC for down payments on homes and then quickly pay if off, this allows me to always have a liquid down payment source on hand. But for a one and done? This makes less sense.

Examples of short and long term uses, HELOCs & CES.

HELOC(Short Term)

- Use a portion or all of the HELOC now knowing you're going to pay down quickly, which eliminates payments and interest.

HELOC(Long Term)

- Many HELOCs have 10 year interest only draw periods, while CES have a P&I payment, HELOCs may have less impact on cashflow over the long term.

- Perhaps you think rates are going to move lower. HELOCs have a variable interest rate, allowing you to take advantage of declining rates without refinancing. 

- Perhaps you want to use it multiple times over a long period of time. Pay it down, draw it up, pay it down etc

CES(Short-term)

- Perhaps you know exactly how much cash you need, and you need all of what's available, say to remodel before selling. CES often have an initial rate that is lower than a HELOC. Take out a lower(comparatively) rate CES for 6 months with plans of paying if off in full say after selling the asset.

CES(Long-term)

- Perhaps you're risk averse, and want a fixed rate long term, with consistent payments and don't have plans to pay off the note.

Most HELOCs don't have restrictions on the use of the funds. I personally have a number of HELOCs on my properties, and as a lender with access to dozen of investor's HELOCs I can say none of them restrict the use of the HELOC, or even require a cash out letter of explanation.

Credit Unions write their own rules! They're lending their own assets and the majority of the time holding the note rather than securitizing it in the market. That can lead to odd quirks, sometimes good deals, and sometimes long and arduous processes, it just all depends.

I will share a story - one Credit Union was offering such attractive HELOC terms that Auto Dealerships caught on to it. Ended up funnelling a bunch of traffic to this particular Credit Union who accidentally ended up financing automobiles via home equity, not exactly the risk profile they had sought out!

Feel free to reach out - with access to a wide array of lenders we have the best products available.

Hey Bigger Pockets!
I love to hear Josh and Dave recognized our unique ability to go up to 95% of the value of the home! It's a special product.

Regarding not having a standalone HELOC product, in 2022 during the heat of the low rate boom we did suspend our standalone product, and I can absolutely understand that wasn't ideal!

In 2024 we are now a leader in the standalone HELOC and Closed End Second(CES) space! And now a proud featured lender with BiggerPockets - we also still offer that unique 95% product, but we also have Standalone HELOCs and CES down to 640 credit scores, on investment properties up to 85-90% LTV max and more!

Coming in to defend Lower.com!

We're not Quicken 2.0 - I get it, we have a digital brand and digital name and for experienced investors that can set off alarm bells!

Our difference is we "blend technology with a handshake" - we leverage technology to deliver lower rates than our competitors, BUT we don't compromise on expertise and personal touch. I know I'm bias, but our reviews speak volumes, 4.8 on trust advisors, you can't fake that!

As far as the "junk fees" - ooof! What a buzz word. Yes, just like **every** lender who advertises rates we advertise our rate with discount points so its as low as possible. We don't hide that in the fine print! And points are optional of course! And *not* junk, they provide you value - a lower rate.

Rest assured you'll get an expert on the phone and a great rate(points or not) driven lower with technology from Lower.com. 

Hey Bigger Pockets!
I am so glad to hear Didier had a great (all be it long) experience with Lower.com back in 2022, refreshing to hear forgiveness regarding the long term times considering it was in the heart of the low rate boom  - posistive expierences is absolutely our main priority and we're proud that's lead to those amazing reviews Cody mentioned up front!

I also love to hear Didier recognized our unique ability to go up to 95% of the value of the home! It's a special product.

Regarding not having a standalone HELOC product, in 2022 during the heat of the low rate boom we did suspend our standalone product, and I can absolutely understand how that leaves a bad taste.

In 2024 we are now a leader in the standalone HELOC and Closed End Second(CES) space! And now a proud featured lender with BiggerPockets - we also still offer that unique 95% product, but we also have Standalone HELOCs and CES down to 640 credit scores, on investment properties up to 85-90% LTV max and more!