What Banks Will Do HELOC on Investment Property?

[Jay Elvin]

Has anyone used a HELOC on one of their investment properties to put a down payment on another property? Anyone know any banks in PA willing to do so? I have one bank so far but looking for others to compare. Thanks!

Jason

[Michael Albaum]

Hi Jason, yes I've done this. The bank gives you a checkbook when you get approved for the HELOC. When you're ready for the down payment on the new home, you simply write yourself a check and use the cash as the down payment. One issue here is that most banks like to see cash in a bank account seasoned for at least 3 months, so you can't have a bunch of cash show up in your account right before you're about to close. My bank charges me interest based on prime rate plus 0.5%. So right now it's at 6%. I'm out in CA so don't have any local bank knowledge, but thought I'd offer a bit of insight.