Who has the best rates for HELOC's, Banks or Credit Unions?

[Josh Chamois]

Hi All,

I'm looking into getting a HELOC to help jump-start my RE investing career. Is it better to use a Bank or Credit Union?

Thanks!

[Mike K.]

Quote from @Caroline Gerardo:

HELOC is pretty universal in terms. Your FICO is 80% of the rate, as is property type. You need a high FICO. Most are 15 year prime+ a margin. Prime is 8.5 . Max on them is usually 22%. Costs are low. Appraisal is a digital one most the time, and lower than you hope. All your full documentation information (IRS taxes net and bank assets) are input and approval is a program, generally no exceptions to their rules. Bank or Credit Union nominal difference. Non owner HELOC are more difficult to find. You can apply online and rarely speak to a person with a bank.

I just got a HELOC from Citizens Bank with an adjustable rate below the 8.5% "Prime" - 8.15%. Credit line is 80% of my equity, no origination costs. $50 annual fee waived first year. Best terms I could find. My local credit union was over 9%.