HELOC vendors in Philadelphia?

[Stefanie Garner]

Apologies if this inquiry already exists. I just completed my first BRRR in Philadelphia and am looking to take a HELOC against the investment property. Anyone have a good vendor to use? Local or national.

[Caroline Gerardo]

A decent rate HELOC you need high FICO of 721 and full documentation of two years IRS returns. Generally HELOC non owner the property must be leased and operational. An automated valuation is used so appraisal is not going to be as high as you hope. Since a HELOC is like a credit card no entity vesting is allowed rates start prime + 3 (prime is 8.5 = 11.5%) 15 year amortization max 22% When you blend the rate with your first payment it makes the cash flow VERY SKINNY. 75% SFR some 70% for attached units ltv on non owner cash out

HELOAN second available as well nationwide. Also full doc for non owner. A few allow entity vesting but the rate bumps way up into the sky, starting at 12 -14 depending on: your middle FICO and property type. SFR/row house/town house/ condo all different pricing.

It is REQUIRED that you closed with title insurance when you purchased and that you NEVER changed the title after the purchase. (as in you cannot have bought in your name and changed deed to LLC) Second position is higher risk loan. Be prepared to send your novel of financials. Second position non owner is a cookie cutter underwrite, no exceptions.