HELOC on investment property? Can it be done?

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I've gleaned these lenders from the kind people on BP. I have used PenFed and TD Bank for HELOCs on my own investment property. Post back if you find another lender who serves you well, and I will add them to my list and pay it forward. These were all sourced pre-CV19, so eat the fish and spit out the bones. Ridge Lending All in One, first position HELOC AFCU does 80% LTV on NOO. Utah Americafirst 80% LTV on noo 65% LTV Utah Arvest Bank AR, OK, AL, MO Bank of the west BB&T will loan on a rental portfolio BBVA Compass Boeing employee credit union Bank of West (BNP Paribas) 60% LTV ELOCs California: Cal Coast Credit Union and Fremont Bank Citizens Bank -Minnesota, only in-state. Kyle Potswald Citizens first position HELOC CMG a financial 70% LTV East West Bank, up to 60% LTV with "no docs” Figure 80% on a rental, not in LLC First Florida Credit Union https://firstflorida.cumortgagecenter.com First Commonwealth First Midwest, up to 90% Chicago area First Republic - California Great Lakes Credit Union Veritex , Texas HELOC HSBC 70%, for premier clients only Huntington 75% LTV 5 yr IO product available Hurst Lending and Insurance Investment property HELOC in Texas. No seasoning. Key Bank, FLorida flexible lender, HELOCs on second homes and rental properties. 90% LTV on primary. Merchants Bank MN See Pavel Ushakov PenFed - max 3 other properties, 89% LTV Qurorum Federal Credit Union 80% equity, owned by LLC is OK. 5 year interest only payments. Tiffany Mazzoccoli. Regions- yes HELOC but no LOC SCCU Florida 70% LTV, 6.25% interest only, not LLC Signature Federal Credit Union 75% LTV Sound CU "non-owner occupied HELOC, capped at $150K and interest rates are prime + 2%, 3% or 4%, based on credit, not to exceed 70% ltv.” S&T Pennsylvania TCF Bank TD Bank TIAA Direct was EverBank Trustco Union Bank, specializes in noo HELOC. KCMO, NE Union Bank, MUFG. US Bank Vectra Bank WSFS...up to 70% on rentaL TEXAS https://www.cutx.org/home-equity-loans/helocs https://www.bankoftexas.com/Personal/Products-and-Services/Loans-and-Lines-of-Credit/Home-Loans/Home-Equity-Lines-of-Credit https://www.frostbank.com/personal/banking/home-loans/equity-line-of-credit

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Some lenders say they can do HELOCs on rentals but they waste your time. Many of them haven't updated their policies yet, or they have tightened lending requirements so much it is impossible to obtain a HELOC I just spent 5 months trying to get a HELOC on a rental property with PenFED and Wells Fargo and failed on both. I changed the rental into my own name, ordered appraisals, etc. Total waste of time, money and effort. My credit score, cash flow, DTI were all excellent. We shouldn't be recommending banks or lenders unless we have been successful recently obtaining that type of loan.

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@Ronald Mejia Yes, a HELOC on a rental can be done. (I have a couple myself.) Just call around to different lenders as every lender has their own product/rules when it comes to HELOCs. Here's a few places you can start with...PenFed, Union Bank, and Wells Fargo (all do HELOCs on rentals). And when you're calling around, here's a blog post I wrote a few years ago with some info on the subject so you'll know what questions to ask: What You Need to Know When Shopping for a HELOC Good luck!

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Keep on making phone calls! You'll have better luck reaching out to the local community banks instead of the larger national ones. There are not many banks that will do HELOCs on rental properties, but they are out there. I have a HELOC on some of my rentals, but it took me some time to commit to making phone calls. What I've done was google map my property, then search for every financial institution in that area and started hitting the phone. I kept a record of every bank I called to keep track of their lending criteria and terms. The hurdle you will likely experience is not that you won't find a bank that will do a HELOC, is finding a bank that will do a HELOC on a property owned under an LLC - I haven't found one yet and is the reason I own a couple of properties under my name. So if your property is owned under an LLC, you will need to make some decisions on whether you want to deed the property out of the LLC and into your name to obtain that HELOC. Make sure you understand the consequences of the deed transfer. In some markets they will consider that a "sale" and require transfer taxes to be paid. You will also lose the asset protection that comes with owning the property under an LLC. But you can mitigate that with having good quality tenants, a great property manager, and adding an umbrella policy to your insurance. Good Luck!

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Jesse,I did my HELOC before the pandemic and it took more effort because of my DTI, not sure how it is now but definitely more difficult because of the tightened requirements. It should be easier with a primary I imagine, all banks work with primary but not all with investment. Also now new mortgages take precedence over refis and I imagine HELOCS as well.

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Scott,I was able to do a HELOC with Huntington under my name but not sure how bad it is now, I know doing a refi has taken me about 5 months and will just be closing probably next week.

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@Roy Gutierrez are you finding more hurdles to clear when attempting this on an investment property versus primary residence? I've had this question asked several times recently by investors I am working with, still trying to determine how this all works.

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Hey Ronald, If your property is in your name Huntington can do it (if you qualify of course), not sure how it is if the house is in an LLC. Be prepared to suffer thru the qualification process banks are requiring more stuff nowadays.

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@Ronald Mejia in that case why not just cash out refi. The terms on investment helocs are usually a lot shorter then primary residence helocs.

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@Ronald MejiaAre the repairs significant? A Heloc might not be your best option. But for sure this can be done.