Best bank/credit union to work with in Minnesota

[Ilya Plugovoy]

Hey all. I am new to BP and MN. Moved here from CA 3 years ago for work and have been looking to get into real estate investing. I've been doing lots of research and was thinking that the best way would be to get a HELOC for the downpayment and then go from there. From my research so far, I found I could get a HELOC from Affinity Plus at 90% ltv with a current rate of 2.5%. That is the lowest I have seen. But my question is if this is a good credit union to work with and has anyone worked with them? Or are there other banks/credit unions that y'all had enjoyed working with.

[Adam Tafel]

Those terms sound pretty ideal- I have a friend who works at the Minneapolis University Ave office, I can reach out to him to get his opinion on the terms. What part of MN are you in? 

[Ilya Plugovoy]

I’m in Burnsville and work in Farmington. 

[Kurt Pauley]

@Ilya Plugovoy

Welcome to BP! Hope you're doing well in these crazy times. 

Those terms are looking pretty good. I know Wings Financial was higher than that when I checked. Compare the fees of course and always good to start with the lender that holds your mortgage.

Good luck out there. 

[Jessica Grewe]

That is phenomenal terms! I'm in Rochester MN and have a HELOC for 15 year 80% ltv at current rate 3.5%. You are hired LOL. What bank can you find with great terms for a 30 year mortgage on an investment property?

[Nick Stageberg]

That sounds pretty good to me! 

[Justin V.]

@Ilya Plugovoy

Sounds stellar. How much is origination?

[Ilya Plugovoy]

@Justin V.

I haven’t sat down with them just yet but plan to do so shortly to get some more details. 

[Clem Foltz]

That does seem really good for a non-owner occupied. I know for a owner occupied we found Hiway Federal Credit Union will go 100% LTV... including at least duplexes... I would say use that knowledge at your own risk. The interest rates are a little bit higher.

[Ilya Plugovoy]

@Clem Foltz

This will be from my private residence. 

[Pavel U.]

I work with Merchants Bank (Rosemount or Apple Valley). HELOC on Investment Property:

>=700 (credit score), <=80% LTV the rate would be Prime - .25%
>=700 (credit score), 80.1% - 90% LTV the rate would be Prime + .50%
>=700 (credit score), >90%, the rate would be Prime + 1.75%

30 years; the first 10 years is the draw period, the remaining 20 years is the repayment.

Annual fee $25.

[Keith Linne]

@Pavel U. I'm fairly new to HELOC style debt. After the 10 year draw period, does the rate continue to adjust along with Prime, or is the rate at the beginning of year 11 locked for the 20 year repayment period?

[Pavel U.]

Originally posted by @Keith Linne:

After the 10 year draw period, does the rate continue to adjust along with Prime, or is the rate at the beginning of year 11 locked for the 20 year repayment period?

The rate can adjust any time, even after 1 month after you open the HELOC.