Getting a HELOC On A Property That Is Being Rehabbed

[William Coet]

Hello,

We would like to get a HELOC on a single-family home property that is being rehabbed. Will banks make a loan on a property mid-rehab?

Thank you

[Kerry Baird]

@William Coet, I have done a dozen or so renovations. I contacted the big HELOC provider, PenFed, my business bank TD Bank, as well as local credit unions. When I explained what I was looking for, they'd ask if the house was under rehab. I got a firm NO for middle of renovation HELOCs.

I also have had lenders say they are doing a desktop appraisal, which means outside only. Or they are doing full appraisal, which is inside and outside.

Lenders do not want there to be loose wires, no roof, boarded up or cracked windows, no kitchen or baths, missing flooring. This is for hard-money lending, credit cards or private loans. Once those items are fixed, then look for a local lender to refinance or get a HELOC.