Heloc on investment property for self employed

[Matt Tallent]

Hey all!

Im thinking of tapping into the equity on my first investment property. I’m not going to go over 80% ltv as I know that’s not allowed.

But how easy is it to get a heloc on an investment property?

Is it risky - the property cash flows really well so not worried about paying the loan just don’t know other risks of heloc a if there are any?

I’m newly full time self employed I just went full time as a realtor in February. Would this disqualify me? Thanks

[Will Fraser]

Hi @Matt Tallent, it doesn't sound to me like you'll have a problem here. A HELOC is, in general, is a bit different than a loan to purchase a property. Since you already own the property, the bank is simply going to be making a decision on (1) their personal exposure to risk right now and (2) the risk position a HELOC on this property would put them in. Since you are content to keep it at or under 80% LTV you should not have an issue there.

Where you're likely to see the trouble is in speaking with a lender.  I think they all hopped on a secret SpaceX flight or something.  They're gone . . . outta here!

no, but seriously the lending systems are broken. They are starting to slow down a bit from the INSANE peaks for purchases and refinances that happened . . . May-September? . . . and you should anticipate some longer-than-average processing times for your HELOC request.