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Updated about 1 year ago on . Most recent reply
Suddenly all Credit Union could offer HELOC to rental
#1 Market Trends & Data Contributor
Folks, nowadays I see suddenly a lot and a lot CU can offer HELOC to rental, with CLTV from 65-75%. Is this something new ? Is there recent changes in banking rules or what ? what is in your market ?
Most Popular Reply
You can look at small/regional banks, specifically the availability of HELOCs on SFR rentals, for a litmus test on two things.
1) Anticipated cost of funds for the next 6-12 months. Rates are trending down, so that makes sense.
2) General outlook on real estate and the economy. Apparently it's looking up, from their perspective.
When some combination of those isn't looking so good, you start to see the regionals get really restrictive, and first on the chopping block is investment property HELOCs.