Which Banks/ Credit Unions will do a HELOC on investment property

[Michelle F.]

Hello,

Does anyone know any banks / credit unions that are doing HELOC / equity line of credit on investment properties?

I know First Tech and PenFed are, but they both have a limit of 4 financed investment properties, and I am just over that. I am not eligible for Navy Fed.

I've been researching and have called several other banks, but they all say that aren't doing HELOCs on investment properties.

Property is in Georgia. 

Any banks / credit unions I should try?

[Matthew Irish-Jones]

@Michelle F. you probably need a local portfolio lender and you probably need to go to a commercial loan structure.  Any investor friendly agent in your area should have a few recommendations. 

[Kerry Baird]

I've gleaned these lenders from the kind people on BP. I have used PenFed and TD Bank for HELOCs on investment property. Post back if you find another lender who serves you well, and I will add them to my list and pay it forward. These were all sourced pre-CV19, so eat the fish and spit out the bones.  It doesn't hurt to call.

Ridge Lending All in One, first position HELOC

AFCU does 80% LTV on NOO. Utah

Americafirst 80% LTV on noo 65% LTV Utah

Arvest Bank AR, OK, AL, MO

Bank of the west

BB&T will loan on a rental portfolio

BBVA Compass

Boeing employee credit union

California: Cal Coast Credit Union and Fremont Bank

Citizens Bank -Minnesota, only in-state. Kyle Potswald

Citizens first position HELOC

CMG a financial 70% LTV

East West Bank, up to 60% LTV with "no docs"

Figure 80% on a rental, not in LLC

First Florida Credit Union https://firstflorida.cumortgag...

First Commonwealth

Great Lakes Credit Union

Veritex , Texas HELOC

HSBC 70%, for premier clients only

Huntington 75% LTV

Hurst Lending and Insurance Investment property

HELOC in Texas. No seasoning.

Key Bank, FLorida flexible lender, HELOCs on second

homes and rental properties. 90% LTV on primary.

Merchants Bank MN See Pavel Ushakov

PenFed - max 3 other properties, 89% LTV

Regions- yes HELOC but no LOC

SCCU Florida 70% LTV, 6.25% interest only, not LLC

Signature Federal Credit Union 75% LTV

Sound CU "non-owner occupied HELOC, capped at $150K and interest rates are prime + 2%, 3% or 4%, based on credit, not to exceed 70% ltv."

S&T

TCF Bank

TD Bank

TIAA Direct was EverBank

Tower FCU, all states except TX, max 45 DTI, green card ok. Max of three rental properties. Automated appraisal.

Trustco

Union Bank, specializes in noo HELOC. KCMO, NE

Union Bank, MUFG.

US Bank

Vectra Bank

Wisdom from Ann Bellamy:

I also never keep much cash in a bank account in the same bank where I have any mortgage. For example, I have a mortgage and operating account at Bank X for one of my businesses. I pull out most of the surplus cash from the operating account and put it in an account owned by the same company but in Bank Y. That way I get to determine how it's used, not the bank.

[Armin Nazarinia]

@Kerry Baird what a great list this is awesome thank you for providing this!!

[Kerry Baird]

@Armin Nazarinia, you are welcome.  I was challenged when folks said it was "impossible" to do, and rose to the challenge to find a few.  :D

[Raul Banda]

Thanks great list I was going to tell you about American first credit Union but it’s already on your list. Much appreciated

[Justin Famulari]

Originally posted by @Kerry Baird:

I've gleaned these lenders from the kind people on BP.

Awesome! I had made a list last year from the kind people on BP...I called around 12 banks, found the 3 with the most competitive rates...lost the list and all my info in a house move...

I’ll get to calling these banks tomorrow! Thanks again 

[Gary Parilis]

@Justin Famulari, who do you recommend? Did you just shop for rates or also TCV? 

Seems to me the key variables are: rate, TCV, draw period, origination/application/loan fees. Also, I hear some charge transaction fees,.

My properties are in PA and FL.

[Santhi Mani]

Just making calls right now:

fremontbank provides HELOC on investment properties situated in CA.

Bank of West provides HELOC on investment properties situated in CA, AZ

[Xuemin Liu]

Hi Kerry, Thank you so much for the HELOC list. My rental properties are in NY but I live in AZ. Thus I have a hard time to find HELOC banks willing to work with rental properties. I used your list and found Penfed for this HELOC with an initial rate of 4.75%. I have used TD bank before for rentals. But they recently told me that they will not loan HELOC to rental properties. Again, thank you!

[Aditya Var]

I have been trying to get a heloc on an investment home. They are asking for a transfer fee at closing. What is this fee, never heard about it before.

Thanks much

aditya

[Tom Dieringer]

Red Canoe Credit Union in Washington and Oregon, capped @ just under $50K

[Darway Dalmeida]

I ran into that with Penfed, do you know if Navy Fed offer home equity on rental over 4 financed?

[Ashley Dyke]

How about a bank that would do a heloc on investment property within LLC located in Colorado other than Vectra Bank?

[Paul C.]

Quote from @Kerry Baird:

I've gleaned these lenders from the kind people on BP. I have used PenFed and TD Bank for HELOCs on investment property. Post back if you find another lender who serves you well, and I will add them to my list and pay it forward. These were all sourced pre-CV19, so eat the fish and spit out the bones.  It doesn't hurt to call.

Ridge Lending All in One, first position HELOC

AFCU does 80% LTV on NOO. Utah

Americafirst 80% LTV on noo 65% LTV Utah

Arvest Bank AR, OK, AL, MO

Bank of the west

BB&T will loan on a rental portfolio

BBVA Compass

Boeing employee credit union

California: Cal Coast Credit Union and Fremont Bank

Citizens Bank -Minnesota, only in-state. Kyle Potswald

Citizens first position HELOC

CMG a financial 70% LTV

East West Bank, up to 60% LTV with "no docs"

Figure 80% on a rental, not in LLC

First Florida Credit Union https://firstflorida.cumortgag...

First Commonwealth

Great Lakes Credit Union

Veritex , Texas HELOC

HSBC 70%, for premier clients only

Huntington 75% LTV

Hurst Lending and Insurance Investment property

HELOC in Texas. No seasoning.

Key Bank, FLorida flexible lender, HELOCs on second

homes and rental properties. 90% LTV on primary.

Merchants Bank MN See Pavel Ushakov

PenFed - max 3 other properties, 89% LTV

Regions- yes HELOC but no LOC

SCCU Florida 70% LTV, 6.25% interest only, not LLC

Signature Federal Credit Union 75% LTV

Sound CU "non-owner occupied HELOC, capped at $150K and interest rates are prime + 2%, 3% or 4%, based on credit, not to exceed 70% ltv."

S&T

TCF Bank

TD Bank

TIAA Direct was EverBank

Tower FCU, all states except TX, max 45 DTI, green card ok. Max of three rental properties. Automated appraisal.

Trustco

Union Bank, specializes in noo HELOC. KCMO, NE

Union Bank, MUFG.

US Bank

Vectra Bank

Wisdom from Ann Bellamy:

I also never keep much cash in a bank account in the same bank where I have any mortgage. For example, I have a mortgage and operating account at Bank X for one of my businesses. I pull out most of the surplus cash from the operating account and put it in an account owned by the same company but in Bank Y. That way I get to determine how it's used, not the bank.

 Hi @Kerry Baird, any chance you have an updated list from this? PenFed is no longer offering fyi…

[Kerry Baird]

I have added a bunch that were confirmed at the time.  But many are changing up with the current financial ops temp. 

All in One, Ridge Lending, first position HELOC

AFCU does 80% LTV on NOO. Utah

Americafirst 80% LTV on noo 65% LTV Utah

Arvest Bank AR, OK, AL, MO

Bancorp South, TX Lines of Credit on free and clear houses

BankNewport

Bank of Southern California, CA

Bank of West (BNP Paribas) 60% LTV CA, AZ, OR

BankRI

BB&T will loan on a rental portfolio

BBVA, now PNC

BECU for OR

Bellwether Community Credit Union, NH and MA 85% to 100%, draw 10 yrs

BMO Harris, 3 HELOCs to 70% LTV

Boeing Employee Credit Union

Cal Coast Credit Union, CA

Change Wholesale

Chelsea Groton Bank, CT

Citizens Bank -MN

Citizens, first position HELOC

CMG Financial 70% LTV CMG Financial in Idaho will do 100% on owner occupied.

Coastal1, RI

Coastal Federal Bank of NC

Consolidated CCU, high LTV NOO LOC, OR, WA

East West Bank, up to 60% LTV with "no docs" CA, WA, NV, GA, NY, TX and MA. Super easy.

Eastern CT Savings Bank, CT

Figure 80% on a rental, not in LLC

Finance of America, 95% CLTV, second home only, 680 FICO, not TX

FirstBank CO and AZ 75% LTV

First Florida Credit Union FL

First Commonwealth

First Midwest, IL up to 90% Chicago area

First Tech Federal. OR and other Western states. Up to 80% if FICO is over 780, no appraisal under $250k value.

First Republic - CA

Fremont Bank- up to 60% CA

Frost Bank - TX

Fulton Bank, PA, NJ

GFA Federal Credit Union 10 yr draw, 10 yr repay, MA, NH

Golden1 California HELOC

Granite State CU, NH 90-100%

Great Lakes Credit Union, Chicago area IL

GTE Financial, Tampa, Sarasota area FL w 2 yrs tax history on property

Hanscom FCU, TX

HarborOne, RI


HSBC 70%, for premier clients only. FL, NY, MD, CA, VA, NJ,

Horizon Bank, Kalamazoo MI

Hughes Federal Credit Union

Huntington MI 75% LTV 5 yr IO product available. Someone reported 80%…need confirmation

Hurst Lending and Insurance Investment property HELOC in Texas. No seasoning. Bridge, portfolio, foreign national and other specialty loan products.

KeyBank, flexible lender, HELOCs on second

homes and rental properties. 90% LTV on primary. BLOC FL, CO, OH, UT, ID

Lafayette Ambassador Bank

Merchants Bank MN See Pavel Ushakov

Mid-Hudson Valley FCU

Mountain America CU Utah, ID, MT, NV, AZ, NM. 85% LTV, promo rate of 1.99%. Can refi an existing mortgage to a shorter term "Mini Mortgage." Currently on pause. Let me know if they start up again.

Navy Federal 80% LTV

Norway Savings Bank, Maine

Omaha Mortgage

Oregonians CU - OR

PenFed - max 3 other properties, including primary. 80% LTV, prime + 1%, <4 properties. Pulls Equifax.

Peoples Bank of NC

PSECU up to 80%

Quorum Federal Credit Union 80% LTV, owned by LLC is OK. Very flexible lender. NY. 5 year draw, IO for 5 yrs and PI for 10 year repayment period. FICO at least 680. Not in Texas.

Quontic does not seem to offer these at the moment.

Red Canoe Credit Union, WA OR

Regions

River Bank & Trust, AL

Rivermark Credit Union, OR 90% LTV

SCCU Florida 80% LTV, 2.75% first year promo, not LLC

SECU NC 65% LTV rate 2.75% Oct 2021

***Signature Federal Credit Union 80% LTV to 100% LTV (100% on primary residence). Nationwide. Fixed rate in Texas. 75% for NOO properties.

Silvergate Bank, CA

Sound CU "non-owner occupied HELOC, capped at $150K and interest rates are prime + 2%, 3% or 4%, based on credit, not to exceed 70% ltv." CT

SouthEast Bank TN

Spring EQ will do a HE Loan on an investment up to 90%

Symmetry

S&T Bank, PA

TCF Bank, FL, GA

TD Bank 75% line with FICO about 740. Up to 4 properties.

Torrey Pines Bank, see also Western Alliance Bank Corp. Commercial real estate solutions for developers, home builders.

Troy Bank & Trust, AL

Trustco Bank, FL, NY, NJ, MA, VT

Trustmark Bank, TX. Call it a LOC rather than a HELOC

Umpqua Bank 80 LTV

Union Bank, specializes in noo HELOC. KCMO, NE., MUFG.

Upstate Bank in Rochester NY, LOC up to 80%

US Bank 80%. “Business equity line of credit: Use Real Estate as Equity” up to $500k, interest only. gather your business and personal tax returns, financial statements, articles of incorporation and other legal documents.”

Vectra Bank - Colo

Veritex, TX HELOC

Webster Bank, CT, RI

WAFD Bank. Origination fee 1% or $700. Can be in an LLC, max 75% LTV. WA, OR, UT, NV, ID, NM, AZ, TX. All-in-One construction loan, too.

WellsFargo 60% LTV Up to 5 properties.

Workers Credit Union, MA 80-100%

WSFS...up to 70% on rental

Zions Bank, Utah

NO: Truist

TEXAS https://www.cutx.org/home-equi... WAFD, Frost, Trustmark

High primary, not investment, HELOC:

Spring EQ 97.5% and fast, at 11 days

Foreign national: Civic 80% LTV for cash out. 5/1, 7/1 and 10/1 interest only ARMS. 1 to 2 year bridge loan. Fund in 5. To 10 business days; can finance the rehab.

SMALL BALANCE HELOC ON PRIMARY

US Bank 15k to $750k 10 year draw. Requires high FICO 730 and LTV 70% or less

PenFed Best Credit Union $25 to $500k 10 yr draw. Up to 90% LTV.

Bank of America, low fee. $25k to $1 million, 10 year draw. HUGE line

PNC Bank best for small home improvements $10k up. 7 to 10 yr draw.

TD Bank from $8 k up. Can go from $25 to $500k…large line.

Frost Bank, in Texas only.

CALIFORNIA: Bank of Southern California, Bank of West (BNP Paribas), Cal Coast Credit Union, East West Bank, up to 60% LTV with "no docs" San Fran, First Republic, Fremont Bank, Golden1, HSBC, Quorum FCU, Silvergate Bank, Umpqua,

TEXAS

Frost Bank, East West Bank, Hanscom FCU, Trustmark Bank, Veritex, WAFD Bank

UTAH

Mountain American Credit Union and America First have great rates for HELOCs

America First will do a HELOC on an investment property in Utah.

STR DSCR Mortgages (not HELOCs)

Visio

Host Financial

American Heritage

LendingOne

RCN

Temple View Capital

[Stephanie Cooper]

Thank you! 

[Rory Boone]

I will add some data points based on my research.

BMO harris in IL only allows for you to own 2 investment properties after that you are no longer eligible for Heloc. 

Figure will do Heloc style loan product up 70 LTV on single family NOO. Not on duplex/triplex or 4plex.

First Tech Federal. OR and other Western states. Up to 80% if FICO is over 780, no appraisal under $250k value.  Max allowed financed properties is up to 3 before you are disqualified for heloc on NOO. 

Americas Credit Union currently does heloc NOO up 70 ltv max allowed financed properties is 6. Payment is 1% of balance.

[Kerry Baird]

Awesome that you did that legwork, @Rory Boone.  

[Nigam Mehta]

For NJ - Trustco Bank don't do HELOC on investment properties anymore. Fulton does it at 75% LTV

[Kerry Baird]

Thanks, @Nigam Mehta.  I appreciate that info

[Ankit Garg]

Try Figure.com for HELOC on investment property

[Kerry Baird]

@Ankit Garg, great suggestion.  That worked for us, too.

[Alina Mitchell]

Thanks for this thread! Just called PenFed and they no longer offer HELOCs on investment properties. Saw Figure.com was recommended on a few places including here so I checked them out and got pre-approved within minutes. Thanks! 

[Adah N.]

@Alina Mitchell

What kind of interest are they offering?

[Kerry Baird]

I was still approved with Figure this month.  My local community credit union will also do them, and in first position.