heloc on rental properties

[Sophia Oberlander]

hi all- any banks or lenders you know doing heloc on rental properties? I saw this post from a fellow bigger pockets follower and wondering if anyone else knows where I can access (outside of Hawaii)

[Lloyd Hassell]

HI Sophia,

The answer to your question is simple and straight forward. Start with TD Bank, HELOCs on investment properties are a part of their lending business. I have an application in process on an investment property at the moment. I found them as a potential lender as a result of a Google search. I also have a HELOC application approved on another investment property with a credit union I belong to. These lenders want to see strong credit, verified personal income, assets vs. liabilities, verified rents, occupancy and a debt to income ratio no higher than 43%.Remember though, there are exceptions to every rule (they may extend the limit on DTI).

There are local banks and credit unions that will underwrite these lines of credit. I found other small banks here in New Jersey that do. In addition, some large banks other than TD do as well (their names escape me at the moment).