Has anyone used Lower.com for HELOC?

Question

Hey Everyone, Just wanted to get some feedback from anyone that has used lower.com to get a HELOC - They seem to have good reviews online but wanted to hear from BP folks on their experiences. Thanks!

Didier Bizimungu · Answer

Hi Blake & Cody, Here's the breakdown of my experience with getting a HELOC on my primary from Lower.com. They drew me in with their offer of being able to pull out as much as 95% of my primary property's value in a HELOC. That's a lot higher than the typical 80%. On top of that, I must have shopped around to almost 20 lenders and their interest rate/LTV were the best I found thus far for my credit average (around 690 at the time). Lower.com, at least for Florida, takes the middle score of the top three credit bureaus. I officially signed and started the process on April 30th, 2021. We scheduled the appraisal which was a full appraisal for May 6th. The value of my home turned out to be about 13% higher than we expected. Underwriting started right around June 10th, 2021. Side notes here to keep in mind, the market is crazy right now and lenders are prioritizing home purchases vs. refinancing due to limited labor availability. One has a hard deadline otherwise the buyer may lose the home and the lender may lose the ability to provide the loan. So, it's typical for them to put refinances that are locked in on the backburner for the most part. Throughout this process, my main contact was the original loan advisor. I made sure to reach out to him at least once a week as a reminder and to make sure he was pushing underwriting. The squeaky wheel gets greased as they say. You will also be assigned a dedicated loan processor, at least I was. She was the main contact in terms of any additional requirements from underwriting. I have a rental property so extra documents included things like leases, proof of no HOA on the rental property, etc. At some point for DTI (Debt to Income Ratio) purposes, I also had to provide rent roll. As of now Lower.com partners with Andrews Federal Credit Union to offer the 95% HELOC. I ended up only being able to pull 89% of my LTV due to my DTI. They calculate your expectant DTI in consideration of you using 100% of your HELOC. After a few months of checking in with both my loan processor & loan advisor, we finally got the clear to close. We signed on August 17th, 2021, and I had the funds from the HELOC in my account on the 23rd. This was expedited as I chose to do direct deposit/wire as opposed to a check. These were the options that were presented in the signing documents as well as the option for the amount I'd like to initially draw. All in total it took around 110 days or 3 months and 19 days from the initial commitment to signing. So don't start this process as of now, expecting these funds soon. I haven't made my first payment so I don't have details on that but if there is interest, I can update this thread when I do. I did pull out the maximum allotted amount of the HELOC which I plan on using for BRRRR (already closed on a property!). A few notes, please shoot me an inbox message if you'd like more details on their credit reports/bureaus as I'm not sure how much of that I'm allowed to publicly share. And use the same contact method if you'd like the contact details of my loan advisor. He's a great guy you just have to stay on top of him like most other folks with a lot on their plates. The same goes for the specific monetary amounts of my specific process. Please let me know if you have any additional questions on this process, I tried to be as thorough as possible. Thank you, Didier B.

Cody Z. · Answer

Thanks for the response! Going through PenFed now for one as well

Didier Bizimungu · Answer

Hi Cody! I'm just going through this process with Lower.com. I'll respond with details in two to three weeks once everything is finalized.

Zach Bosson · Answer

Hi! Yes! We offer "standalone" HELOCs, HELOCs that do not require a refinance in addition to that special 95% product that does require a refi.

Zach Bosson · Answer

Hey Bigger Pockets!I am so glad to hear Didier had a great (all be it long) experience with Lower.com back in 2022, refreshing to hear forgiveness regarding the long term times considering it was in the heart of the low rate boom - posistive expierences is absolutely our main priority and we're proud that's lead to those amazing reviews Cody mentioned up front!I also love to hear Didier recognized our unique ability to go up to 95% of the value of the home! It's a special product.Regarding not having a standalone HELOC product, in 2022 during the heat of the low rate boom we did suspend our standalone product, and I can absolutely understand how that leaves a bad taste.In 2024 we are now a leader in the standalone HELOC and Closed End Second(CES) space! And now a proud featured lender with BiggerPockets - we also still offer that unique 95% product, but we also have Standalone HELOCs and CES down to 640 credit scores, on investment properties up to 85-90% LTV max and more!

Jorge Siverio · Answer

I just contacted Lower.com today and got pre-approved with a 770 credit score. Then they proceeded to mention that they would not do the HELOC without taking possession of the first mortgage on the property. So their proposal was that I refinance at the same interest rate. This was laughable at the least. Why would I refinance and pay around $15k in costs just so that I can get a HELOC with them. My loan officer was very helpful and knowledgeable, but this is just not what I was looking for.Talking with Quorum FCU tomorrow, who does not require that you refinance with them.

Greg Soon · Answer

@Jorge SiverioI had the same experience in the last two days. Initially Zack said nothing about refinance the 1st mortgage, only talked about 95% or even 100% LTV, seems a good fit for me. Then said he would like to go through again tomorrow. Next day another person calls in, just repeating what I said the day before in a dumb way and eventually said, you know you have to refinance the 1st mortgage, right? I said no then called Sack and he no longer pick up the phone.This whole thing leaves a bad taste in my mouth. I hope they are truthful from the beginning instead bait and switch

Kelly Jenkins · Answer

Zach- BUT do you have to refinance mortgage to get HELOC

Blake Wilson · Answer

Hey Didier interested to here your experience so far with lower.com? I know it's only been a few days but wondering your impression so far