Heloc on investment property

[Dave S.]

I just called 6 banks in WA state to try and get a HELOC on a rental property. The purpose of the HELOC would be used for a partial down payment on another investment property. All 6 said if the intended use is to purchase more real estate they wont lend. Even if the property was owned free and clear they would not lend one dollar against it. I did find a credit union in Oregon that would do it but they don't lend in WA state. If anyone has any ideas that would be great! Thank you.

[Jeff Lab]

Tell the bank the HELOC will be used to make improvements on the residence. I doubt they're going to audit your purchases after you secure the HELOC.