HELOC Questions for "Investment Property"

[Bret Halsey]

Hey y'all, I owner occupied and house hacked my current residence for nearly a year and am looking to open a HELOC on it. I am moving out to do the same thing all over again but would like to access the equity built in it already from this crazy market to value add my new place. Anyone know of banks/lenders/credit unions that will offer a product for an "investment property" (technically since I'm not going to be living there anymore) up to 90% LTV? I've reached out to a couple credit unions but they seem hesitant/have stipulations for "investment properties" for example providing only 70-80% LTV on HELOC products. Any input appreciated, thank you!

[Greg Dorn]

Hey @Bret Halsey, So most lenders are going to cap your LTV and CLTV on investments at 80%, just not common to go higher and even if they do the rates get crazy because they have a higher risk so they offset it with more interest. I would recommend staying at the 79.999% loan to value to keep the rate down. Even though I do this job for a living the best HELOC I have seen is with PENFED and they will do it on an investment with a rate at prime + 1.5% which is really good. If you keep the line open for 3 years they cover almost all the costs as well.

I would look at that as that is where I am going to get my heloc from to reno my current property and finance the purchase of the next property. Obviously not financial advise, just what I am doing.