Mortgage Loan Originator · Providence, RI · Member since 2016 · 35 posts · 22 votes
Does anyone have any experience with a HELOC using PenFed, Signature FCU or Elements Financial? These were the most legitimate lenders I have been able to find that will go above 80% LTV at a decent rate, Prime + 1. PenFed will go to 85% while Signature and Elements will go to 90% at Prime + 1.
I've read mixed reviews of each, wonder if its anything to worry about or if they have a decent customer experience. Open to more suggestions if you know of any!
This is for a single family primary residence in RI.
Banker · Nationwide · Member since 2020 · 2k+ posts · 1k+ votes
4y
Sometimes the best way to maximize cash out is to do a 80% LTV cash out refinance and then take out a HELOC for the other 15% CLTV not LTV.
Unless the home is free and clear in that case you should still do the cash out refinance for the 30 year fixed payment benefit and avoid prepayment penalties if any on most HELOCS> Just remember a HELOC is a debt obligation not an asset and cannot be used as a liquid or PITI reserve on any new investment purchase.
Let me know if you hit a road block I can suggest some options.
Banker · Nationwide · Member since 2020 · 2k+ posts · 1k+ votes
4y
Sometimes the best way to maximize cash out is to do a 80% LTV cash out refinance and then take out a HELOC for the other 15% CLTV not LTV.
Unless the home is free and clear in that case you should still do the cash out refinance for the 30 year fixed payment benefit and avoid prepayment penalties if any on most HELOCS> Just remember a HELOC is a debt obligation not an asset and cannot be used as a liquid or PITI reserve on any new investment purchase.
Let me know if you hit a road block I can suggest some options.
Rental Property Investor · Melbourne, FL · Member since 2011 · 3k+ posts · 2k+ votes
3y
@Christian Scully I have used PenFed on my primary residence, but they are no longer doing equity loans on investment properties. Of course, you don’t say whether you are looking for a loan on your primary residence or on an investment property. Could you share what you decided to use?
Signature still advertises HELOCs on investment properties. Figure is known for doing fast HELOCs while Quorum has done HELOCs on investment properties, even though held in LLCs. I have one contact who reported her line with Quorum has been truncated. That is the first time I have heard of that in this financial cycle.