LOC for Rehab needed only

[Jose Vasquez Dickson]

Hey, BiggerPockets! I'm Jose and I've been wholesaling for almost 2 years. Recently I've been working to get all my ducks in a row to start BRRRRing SFH here in Central FL. Everything is already good to go (the refi, the rent strategy, and the GC) except for the first piece of the puzzle: the Buy. I am a real estate investor full time and the last time I worked in a W2 job was on May 2022. So my only income at the moment is my wholesale business. I currently have around $25k liquid and holding onto as much as I can in case it's needed to be approved for any type of LOC.

Yesterday, I did a PML pitch to a long-term experienced investor and he agreed to fund 100% of the purchase but I need to come up with 100% of the rehab. So I want to use a LOC for the Rehab portion only. The LOC will help me for maximum scalability and not decapitalize my own funds in case of emergencies such as going over the rehab budget or getting approved for a LOC. I have some options in mind that I'll explain below of my situation and I wanted some help to see how I can get access to these.

HELOC
- I have a condo in Orlando that is under my personal name and it's owned free and clear. I would love to get a HELOC on it but when calling around to lenders, they all tell me that my LLC (wholesale business) needs to be at least 2 years in age. It will be 2 years in August 2023. This condo is worth around $190k so I could get a HELOC of around $130k which would be perfect! Are there any lenders that you know that might help me with this?

Business LOC
- Is there any business Line of Credit that I'm able to use for the rehab portion only?

Any other options
- I'm open to hearing any other options that can help me to fund the rehab portions of the SFH BRRRRs that I'll be doing. The rehab would be around $30k-40k for every project (estimated).
- I'm going to continue calling around lenders but I thought I ask BiggerPockets as you guys are always so helpful!

Thank you for reading all this! Thank you in advance for any comments and suggestions!

[Jose Vasquez Dickson]

Quote from @Chris Seveney:

@Jose Vasquez Dickson

Do you live in the condo in Orlando or is it a rental?

If it’s non owner occupied may be able to get a loan on it.

It's a rental. I'm seeing that trying to get a HELOC on it has been a little tough to find but I'm going to continue searching until Wednesday.

However, I did find a post and Kerry Baird replied giving all this possible lenders that will do HELOCs on an investment property.

All in One, Ridge Lending, first position HELOC

AFCU does 80% LTV on NOO. Utah

Americafirst 80% LTV on noo 65% LTV Utah

Arvest Bank AR, OK, AL, MO

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

BankNewport

Bank of Southern California, CA

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

BankRI

BB&T will loan on a rental portfolio

BBVA, now PNC

BECU for OR

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

Change Wholesale

Chelsea Groton Bank, CT

Citizens Bank -MN

Citizens, first position HELOC

CMG Financial 70% LTV CMG Financial in Idaho will do 100% on owner occupied.

Coastal1, RI

Coastal Federal Bank of NC

Consolidated CCU, high LTV NOO LOC, OR, WA

East West Bank, up to 60% LTV with "no docs" CA, WA, NV, GA, NY, TX and MA. Super easy.

Eastern CT Savings Bank, CT

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

First Republic - CA

Fremont Bank- up to 60% CA

Frost Bank - TX

Fulton Bank, PA, NJ

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

Golden1 California HELOC

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

HarborOne, RI


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

Horizon Bank, Kalamazoo MI

Hughes Federal Credit Union

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

Lafayette Ambassador Bank

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." Currently on pause. Let me know if they start up again.

Navy Federal 80% LTV

Norway Savings Bank, Maine

Omaha Mortgage

Oregonians CU - OR

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

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. FICO at least 680. Not in Texas.

Quontic does not seem to offer these at the moment.

Red Canoe Credit Union, WA OR

Regions

River Bank & Trust, AL

Rivermark Credit Union, OR 90% LTV

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

SECU NC 65% LTV rate 2.75% Oct 2021

***Signature Federal Credit Union 80% LTV to 100% LTV (100% on primary residence). Nationwide. Fixed rate in Texas. 75% for NOO properties.

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

SouthEast Bank TN

Spring EQ will do a HE Loan on an investment up to 90%

Symmetry

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, TX. Call it a LOC rather than a HELOC

Umpqua Bank 80 LTV

Union Bank, specializes in noo HELOC. KCMO, NE., 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, TX HELOC

Webster Bank, CT, RI

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

NO: Truist

TEXAS https://www.cutx.org/home-equi... WAFD, Frost, Trustmark

High primary, not investment, HELOC:

Spring EQ 97.5% and fast, at 11 days

Foreign national: Civic 80% LTV for cash out. 5/1, 7/1 and 10/1 interest only ARMS. 1 to 2 year bridge loan. Fund in 5. To 10 business days; can finance the rehab.

SMALL BALANCE HELOC ON PRIMARY

US Bank 15k to $750k 10 year draw. Requires high FICO 730 and LTV 70% or less

PenFed Best Credit Union $25 to $500k 10 yr draw. Up to 90% LTV.

Bank of America, low fee. $25k to $1 million, 10 year draw. HUGE line

PNC Bank best for small home improvements $10k up. 7 to 10 yr draw.

TD Bank from $8 k up. Can go from $25 to $500k…large line.

Frost Bank, in Texas only.

CALIFORNIA: Bank of Southern California, Bank of West (BNP Paribas), Cal Coast Credit Union, East West Bank, up to 60% LTV with "no docs" San Fran, First Republic, Fremont Bank, Golden1, HSBC, Quorum FCU, Silvergate Bank, Umpqua,

TEXAS

Frost Bank, East West Bank, Hanscom FCU, Trustmark Bank, Veritex, WAFD Bank

UTAH

Mountain American Credit Union and America First have great rates for HELOCs

America First will do a HELOC on an investment property in Utah.

STR DSCR Mortgages (not HELOCs)

Visio

Host Financial

American Heritage

LendingOne

RCN

Temple View Capital