Investor · San Mateo, CA · Member since 2015 · 62 posts · 52 votes
Hi BP,
I have some equity in a rental property in the Bay Area that I'm looking to make use of. All the lenders (mostly banks) I've contacted do not offer HELOC for rental properties. Has anyone found success with credit unions locally that offer such product? If so would love to hear your experience such as the terms you're getting and who you're working with. Cash out refi is not something I'm interested in.
Real Estate Agent · Brentwood, CA · Member since 2018 · 285 posts · 225 votes
7y
@Mark Lee - We have a great relationship with an investment friendly lender we refer our clients to all the time. Shoot me a PM and I can connect you if you want.
Rental Property Investor · San Jose, CA · Member since 2016 · 6 posts · 3 votes
7y
I contacted some banks last year. Those banks offered me HELOC for investment property: Union Bank, EastWest Bank, California Bank & Trust, Cathay Bank.
Here is the terms from Union Bank in 2018 for your reference.
For an investment property in California, the current annual percentage rate is 6.25% for lines of credit $100,000 and above, 7.00% for lines of credit $50,000 – $99,999, and 9.25% for lines of credit $20,000 - $49,999. These are variable rates based on the prime rate and include a .25% discount for setting up auto pay from a Union Bank deposit account.
There are no application, annual, or prepayment penalty fees. There is a maximum closing cost of $250 for the cost of the appraisal, which is due at closing.
Real Estate Agent · Brentwood, CA · Member since 2018 · 285 posts · 225 votes
7y
@Mark Lee - We have a great relationship with an investment friendly lender we refer our clients to all the time. Shoot me a PM and I can connect you if you want.
Lender · Phoenix, AZ · Member since 2018 · 440 posts · 256 votes
5y
@Ronak Shah We offer Helocs on investment properties in California. Our loan is a specialized line of credit that's tied to a zero balance sweep checking account. So every normal banking deposit is swept directly towards your remaining balance. It's similar to how large corporations finance their debt using ZBAs. It lowers interest cost, and maximizes flexibility. Your idle funds work for you, not the bank.