Are HELoCs back yet???

Question

In all seriousness, how has anyone's experience been with this product and the banks/lenders as of lately?

Has anything changed compared to pre-pandemic?

Also, who's offering, who isn't? Specifically in the South Fl area?

Kind, non-condescending responses are much appreciated.

Evelio Martinez · Answer

Thanks to everyone who responded to this post. Sry took a few days to respond back, been busy days at regular 9-5 grind.

@Kevin Kohler was looking mainly for typical residential HeLoC access with the property securing it.

@Ken Naim thats good to hear you were able to get one during the pandemic. I'm hoping as economy starts to reopen I can gain more of a 75-85% LTV access. Will look into Hanscom CU as you mentioned.

@Raymond J. Rodrigues can you please be a bit more specific on the name of that bank/lender?

Demetrius Gatling · Answer

I was wondering the same thing. Navy Federal is not offering the HELOC. I guess I need to do some calling around tomorrow. Thanks for the answers.

Raymond J. Rodrigues · Answer

@Evelio Martinez, HELOCs are here. I think financial has a good HELOC product. Reach out to them.

Ken Naim · Answer

@Evelio Martinez i got a Heloc in south floida 60% LTV during the pandemic. Hanscom federal credit union

Nick Belsky · Answer

@Evelio Martinez I am a mortgage broker in Texas.  I work with more than 30 lenders.  We never quit doing HELOCs... I am only licensed in Texas (for now) but our network can lend in California, Arizona, or Colorado also.  We are in process of extending into Florida, Virginia, New Mexico, Washington, and Oregon by the end of this quarter.  We are still doing Refis too.

Robert Belz · Answer

Hi @David Sienema,

Sure thing. This was for a property in SLC, UT. I tried to stay away from the big guys: Wells Fargo, Chase, BoA, etc. Even the more regional banks (Zions, UT Bank, US Bank) were either not offering the the product or were not competitive. I ended up calling a lot of Credit Unions, and America First Credit Union ended up having the most competitive offer for a non-owner Occupied HELOC.

Since I can't speak to your market specifically, I'd recommend calling regional credit unions, as more of them seemed to offer that product.

Kevin Kohler · Answer

@Evelio Martinez

I was able to help a client find good terms for a $1.5M multifamily in Miami with financing about 3 weeks ago on the CRE side. Biggest thing I have seen on residential is foreign national loan product have dried up. What type of financing product are you looking for?

David Sienema · Answer

Hey @Robert Belz

Would you mind sharing which banks/credit unions you found that offered this product and which was the one that had good terms? Many thanks!

Robert Belz · Answer

Hi @Evelio Martinez,

Sorry I can't speak to the South Florida market, but I was able to get a non-owner occupied HELOC on an investment a few months ago. I probably called 25 banks and credit unions, only a handful offered the product, and only one was a fair offer. I'm sure if you were looking for a owner-occupied HELOC you would find willing lenders, especially since owners now have significantly more equity in their homes as the real estate market continues its current tear.

It's safe to say that underwriting typically takes longer and requires more information/detail from the customer when compared to pre-pandemic times.