Best Way to Pull Equity from 2 Investment Properties

[Ben Morrow]

I have built significant equity in both of my single family investment properties and would like to tap the equity from both to put a down payment on a multifamily. I was planning to take advantage of the low rates and do a cash out refinance on both. However, just in the last week the rates have gone up significantly and are now higher than my existing rate by around .75-1%. Would a HELOC make more sense? Are there any other options that I have?

[Kerry Baird]

@Ben Morrow, you don't say where you are located, so a long list is coming.  :D

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 largely sourced pre-CV19, so eat the fish and spit out the bones.

The DTI percentage range varies by lender, and is less than what you will find for an owner occupied property, due to lender risk. While qualifying for a HELOC is dependent on your home equity and your credit score, good or excellent credit makes it easier to qualify. A good average to shoot for is 620 or higher. Plus, the better your credit score, the better your interest rate.


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

Aven…not on investment properties.

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

Bank of Southern California, CA

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

BB&T will loan on a rental portfolio

BBVA, now PNC

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

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

Citizens, first position HELOC

Coastal Federal Bank of NC
CMG Financial 70% LTV

Consolidated CCU, high LTV NOO LOC, OR, WA

East West Bank, up to 60% LTV with "no docs” San Fran CA area

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. Western states. Up to 80% if FICO is over 780, no appraisal under $250k value.

First Republic - CA

Fremont Bank- CA

Frost Bank - TX

Fulton Bank, PA, NJ

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

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

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

Horizon Bank, Kalamazoo MI

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

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.”

Navy Federal 80% LTV

Norway Savings Bank, Maine

Omaha Mortgage

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

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.

Red Canoe Credit Union, WA OR

Regions- yes HELOC but no LOC

River Bank & Trust, AL

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

SECU NC 65% LTV rate 2.75% Oct 2021

Signature Federal Credit Union 75% LTV (100% on primary residence), VA

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

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, Texas. Call it a LOC rather than a HELOC

Union Bank, specializes in noo HELOC. KCMO, NE

Union Bank, 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, Texas HELOC

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