Anyone know if it's possible to get a HELOC on a condo that's a rental?

Question

Hi folks! I've talked to a couple of smaller lenders here in New Mexico, and they have both told me that they don't offer HELOCs on condos or non-primary residences. I understand that this is common for smaller credit unions, but both mentioned that larger lenders may offer options. Does anyone have experience with HELOCs on condos and/or investment properties? Better yet, does anyone have any good lender recommendations? Thanks a bunch!

Alex Hunt · Answer

Hello Abigail,Why are you considering a HELOC instead of a cash-out refi? I have experience with both options for non-primary residences. Please don't hesitate to DM me if you'd like to discuss further.Thank you!

Brittany Minocchi · Answer

There are HELOCs and HELOANs available on investments, but for the HELOC, the property would have to be titled to an individual and not an LLC. HELOANs can be in an LLC, but that's a lump sum and not a line of credit. Be prepared for a lower LTV compared to a primary home and potentially wild rates - it's not cheap to get a second lien on an investment property, especially a condo. Happy to chat if you want to connect!

Josh Holt · Answer

Pentagon federal.

Abigail Wise · Answer

Thank you both so much!!

Abigail Wise · Answer

I guess I was leaning toward a HELOC because I like the idea of only taking out what I need, but having access to a larger limit if needed later on. Of course with Figure they disperse the whole thing at once, so you'd need to repay it all initially before you have that flexibility, which is why it's a bit less attractive to me.

Alternatively, we could do a HELOC on our primary, which we own outright, but my husband gets nervous about that plan.

While I have you: Do you know anything about land equity loans? I haven't done much research there yet, but would be curious about considering that option as well, as we do own some land, too.

Abigail Wise · Answer

FYI I just found this useful thread, but so far have only found success with Figure, which isn't traditional in that it gives you the full amount at once vs. a line of credit. You CAN, from what I understand, though, pay it all back and then do a second draw in the more traditional way.

Anyways, here's the link to the thread that was helpful: https://www.biggerpockets.com/forums/104/topics/852717-which...

Anyone know if it's possible to get a HELOC on a condo that's a rental?

Anyone know if it's possible to get a HELOC on a condo that's a rental?

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