Bank Recommendations for Investment Property HELOC

[Dairol Matos]

Hello,

Does anybody has recommendations for banks offering HELOC on Investment properties? I have a multifamily property in NJ with great equity. I have been shopping for a HELOC to renovate one of the two apartments to get more cash flow. However, it has been difficult to find a bank offering HELOC on investment properties. I reached out to local small banks, Flag Star Bank, Churchill Mortgage, PNC Bank, PenFed Credit Union, and others. So far, the only bank I have found offering HELOC on investment properties is TD Bank.

[Dairol Matos]

Quote from @John O'Leary:

Hey Dairol,

The majority of HELOCs are taken out against primary residences. Lenders are more comfortable with a loan against the actual roof over your head because they know you'll prioritize repaying that loan. However, some lenders might offer a HELOC type product. You could use a DSCR loan to cash out of an investment property to access the equity to rehab the units. Plenty of good lenders here on BP that offer DSCR loans.

 Thank you John! I appreciate your Feedback and will look into this option to learn more about it.