Philadelphia HELOC references? Recommendations?

[Account Closed]

Hey everyone!

I am looking to start up a fix & flip business alongside my dad. Since my family's home where I grew up no longer has a mortgage, we were considering using a HELOC to cheaply start our fix & flip business (side note: we have never used a HELOC before).

-(*For Philadelphia investors*) 

Does anyone know any lenders/references in the Philadelphia area that offer great terms for a HELOC? Have you ever worked with these lenders & what was your experience?

-(*For all investors*) 

Have you ever used a HELOC to start-up or fund your business, and what was your experience? What are some key criteria or loan terms to look for, when searching for a lender for your HELOC? Any advice or warnings?

Thanks so much all, I look forward to hearing your insights.

[Harry Metzinger]

Hi @Account Closed, I have a HELOC w/ American Heritage Federal Credit Union. I would suggest taking a look at them. www.amhfcu.org Their rates are competitive but in my opinion, the greater benefit is how much they are willing to let you borrow on a HELOC. I have a HELOC w/ them at 95% LTV on my primary residence...with the intention to eventually use it to help fund the purchase of an investment property. (I thought their appraisal of my house was a little low...so probably came out to 92-93% LTV, but that's neither here nor there.) I was hard pressed to find another lender willing to offer above 85% LTV. Their rate is 0.5% higher for a HELOC at 95% LTV than a HELOC at 90% LTV. I have not drawn from it yet, but it seems fairly straightforward to access the funds once you're ready.