HELOC on an investment property?

Question

I am looking to secure a HELOC soon and i am planning on doing this on an investment property. i have heard that this is nearly impossible to do as banks will not do a HELOC on an investment property. has anyone been able to do so, and would you be able to share the bank that you were able to use.

Any help or guidance would be greatly appreciated.

Kerry Baird · Answer

I've gleaned these lenders from the kind people on BP.  I have used PenFed and TD Bank for HELOCs on investment property.  Post back if you find another lender who serves you well, and I will add them to my list and pay it forward.  These were all sourced pre-CV19, so eat the fish and spit out the bones.

Ridge Lending All in One, first position HELOC

AFCU does 80% LTV on NOO. Utah

Americafirst 80% LTV on noo 65% LTV Utah

Arvest Bank AR, OK, AL, MO

Bank of West (BNP Paribas) 60% LTV ELOCs

BB&T will loan on a rental portfolio

BBVA Compass

Bellwether NH and MA 85% to 100%, draw 10 yrs

Boeing employee credit union

California: Cal Coast Credit Union and Fremont Bank

Citizens Bank -Minnesota, only in-state. Kyle Potswald

Citizens first position HELOC

CMG a financial 70% LTV

East West Bank, up to 60% LTV with "no docs”

Figure 80% on a rental, not in LLC

FirstBank CO a and AZ 75% LTV

First Florida Credit Union

First Commonwealth

First Midwest, up to 90% Chicago area

First Republic - California

Fulton Bank

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

Granite State CU, NH 90-100%

Great Lakes Credit Union

Veritex , Texas HELOC

HSBC 70%, for premier clients only

Huntington 75% LTV 5 yr IO product available

Hurst Lending and Insurance Investment property HELOC in Texas. No seasoning.

Key Bank, FLorida flexible lender, HELOCs on second

homes and rental properties. 90% LTV on primary.

Merchants Bank MN See Pavel Ushakov

PenFed - max 3 other properties, 89% LTV

Quorum Federal Credit Union 80% equity, owned by LLC is OK.  5 year interest only payments. New York State. Tiffany Mazzoccoli.

Regions- yes HELOC but no LOC

SCCU Florida 70% LTV, 6.25% interest only, not LLC

Signature Federal Credit Union 75% LTV

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.”

S&T Pennsylvania

TCF Bank

TD Bank

TIAA Direct was EverBank

Trustco

Union Bank, specializes in noo HELOC. KCMO, NE

Union Bank, MUFG.

Upstate Bank in Rochester NY

US Bank

Vectra Bank - Colo

Workers Credit Union, MA 80-100%

WSFS...up to 70% on rental

Mark Puen · Answer

@Bernadeau C.  I’m currently going through the process of obtaining a HELOC for the same purpose.  I did not mention to the lender that it would be used for another property. I only stated it would be used for “home improvements”.   I’m completely new to RE investing so we will see if the application goes through. Currently my application has been sent to underwriting for review. So far so good. Will let you know the outcome.

Gary Parilis · Answer

I got two this year (on two diff properties), one through Fulton Bank and one through TD Bank.

Ben Zimmerman · Answer

Penfed, 80% LTV @4.75% interest for investment properties as of today.

https://www.penfed.org/home-eq...

Kerry Baird · Answer

You can bet that everything is different now than when I first got mine.  That said, do ask.  Trustco (also in New York) also offered them on investment properties.  A friend of mine has 14 HELOCs from our local credit union.  They are not as regulated as regular mortgages.  Make a list of local lenders, community banks and credit unions especially.  Pull your own credit with MyFico or the like, and ask each lender, "With a score of ZZZ and a value of about YYY, what can you offer me as far as rates and term?"

I found that rate, term vary by lender, but also the repayment period.  More importantly, whether they do a drive by appraisal (desktop valuation) or require a full appraisal. That makes a difference, too.

Raul R. · Answer

@Kerry Baird

I reached out to PenFed a while back I remember there were limitations w their HELOC for investment properties .

Are there any limitations w TD bank??

Logan Larochelle · Answer

Any luck on finding someone to do a heloc

Brent Coombs · Answer

Mark, getting a HELOC against your own primary defeats the purpose of the OP's question.  But, good luck, using it for a different property is exactly what a HELOC is best used for...

Bernadeau C. · Answer

Thanks everyone!

Eric Veronica · Answer

You may want to look through the local message board of bigger pockets.  You are correct that HELOC on investment properties are not super common.  Often times you can find local smaller credit unions or banks that will offer HELOC financing on investment properties.

HELOC on an investment property?

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