Investor · Riverside, CA · Member since 2015 · 185 posts · 27 votes
Is it possible to get a line of credit on an investment property? Like HELOC, except for investment properties rather than primary residence? And if it is possible, does anyone know institutions that offer this service?
@Joshua Chen Yes, it is possible, but it is very uncommon these days for banks to offer this. There is one bank in my area that does this. I'd suggest just calling all your local small banks and credit unions.
I called Navy Federal and PenFed asking about these products today. Navy Federal does interest only HELOC's up to 70% LTV. PenFed doesn't have interest only but they do 15 year HELOCs on investment properties up to 80% LTV. Of course you have to be military, former military, or family member of someone that is/was military to qualify for membership.
Thanks for posting this veteran-friendly information! Lenders and the products we need to build our business are often a challenging part of the investing equation.
I'm actually in the process of doing this right now...so it can definitely be done!
I currently have three properties, all of which I used the same bank to originate the mortgage. When I was shopping around for 'lines of credit' I decided to call them first. They weren't able to offer me a HELOC (because they obviously weren't my primary residence), but they COULD offer me a BLOC (Business Line of Credit) due to the fact that they were investment properties.
If you already have a property (or properties), I would start by calling the bank(s) that you are familiar with. I would imagine that lending institutions are more willing to do something like this when you already have a business relationship with them.
Am in a similiar boat. Just a heads up ; when i tried using Pen Fed , they would not approve me because i already had 3 loans out on different properties . Will try Nave Credit Union next