ISO: HELOC lender (calculating rental income for qualification)

[Tim Grich]

Hi All,

I'm trying to qualify for a HELOC. The problem I'm running into is two-fold:

1) Many banks still have a moratorium on these due to COVID

2) Debt to Income qualification due to unique rental income situation

On #2, I bought a triplex last September, one unit was delivered vacant, I spent a couple months renovating it, then filled it a couple months ago. Both credit unions I've visited so far calculate rental income for debt to income purposes using last years tax return. Unfortunately, last year looks terrible due to the purchase/vacancy/renovation. However, today's reality is much more stable with it fully rented.

Does anyone have recommendations for a bank or credit union that might calculate this differently? Perhaps using the income *.75 model (where I would show a profit)?

I'm in Los Angeles, have plenty of equity in my personal home, and am looking to secure a small LOC of $50k-$100k.

Thank you!