Where to get a HELOC

Question

This probably sounds like a silly question, but where should I apply to get a HELOC?  It seems like there are a million options and I'm wondering if one is better than the other. My purchase last year at $130k is now appraising at $225-240k, I only owe $100k, and I am thinking a HELOC may be the way to go for a land purchase I want to make, but I've actually never had a home equity line before.

Dustin Twiggs · Answer

Thanks Jim. The property is currently my primary residence. I've had it for about 13 months however I plan to rent it out in the future (maybe a 1 year+ down the road though)

Jim Adrian · Answer

@Dustin Twiggs

If you are using a rental property for your heloc, then you will see 75% ltv or lower typically.  Its also worth paying for a the walk thru appraisal to capture all the value, which runs about $500.  The free drive-by appraisal will leave money on the table.  If you are using a primary residence for the heloc then you will see the 85% ltv range.  Shop around with different banks.  They will tell you up front what they can do for % ltv.   Interest rates will vary if the heloc is on  rental property (higher) vs primary residences (lower) as well.

Dustin Twiggs · Answer

ah OK I know a small local bank that might be just the ticket then. thank you!

When you google this there are so many options out there, I didn't want to apply, take a hard check hit on the credit, and end up with a weak LOC, I really wanted to get the most bang for my buck from the beginning.

William Murrell · Answer

Go to a regional bank and ask to speak to their loan officer.  Don't bother with mega banks (BOA, Wells Fargo, etc).  Explain to them what you just explained to us.  Tell them you want it so you can remodel the house. The last time I talked to a lender about it, they were doing 85% LTV, so you'd be looking at ~90k HELOC.  That figure will most likely vary.  They'll set everything up, appraise it, and then tell you what you can get.  Good luck!