Good places to get a HELOC for a property in CA?

Question

Has anyone had success with a HELOC for a rental property in California in 2021? I have a property in Sacramento that I'd like to get a HELOC for and was wondering if anyone had any suggestions, I tried applying for one in late 2020 but it seems the backlog was quite high at my credit union so thought I ask for some suggestions. Thanks!

Justin Phillips · Answer

@Steven Li @Jared Rine Exactly, it's like a Heloc on steroids. The best of both worlds as far as interest savings, and long term flexibility. You pay down your balance much quicker, but retain access to your equity for the 30 year term. Much more staying power than a traditional Heloc, lower rate caps, longer draw period, and full automated via that ZBA.
Kills many birds with the one stone!

Jared Rine · Answer

@Steven Li I'm not affiliated and I don't do HELOC's, but I'd check with Figure.com (tech company), and also First Republic, depending on what you're looking for.

Joe Bertolino · Answer

Golden One Credit Union, SAFE CU, Heritage Community Credit Union (Folsom), El Dorado Savings Bank, California Bank and Trust, US Bank. Heritage CU will go up to 90% LTV with a max of $100K.

Marin Hayward · Answer

@Steven Li

I recently researched on the same.

Fremont bank and San Mateo Credit Union can help you with a HELOC for an investment property.

Jared Rine · Answer

@Steven Li...you're very welcome. Like I said, I don't do them but I've seen other clients use Figure and they seem to make the process very simple. As for what Justin mentioned in response to your post, that's a different type of loan. Known as the All In One loan. I really like the program, but it's difficult for most to grasp, otherwise I'm a huge proponent for it also. But you basically take your whole mortgage as a LOC and thus, you not only have extreme flexibility, but also can pay your mortgage off so much faster than a traditional loan because of how interest works. Not trying to hijack, but just providing more insight.

Steven Li · Answer

@Jared Rine thanks for the suggestions! I checked out figure and was pretty amazed how easy it was. Also calling first republic later to see what rates they offer as well

Steven Li · Answer

@Justin Phillips thanks!

Justin Phillips · Answer

@Steven Li Sure thing! I'll shoot over a PM with some further details.

Steven Li · Answer

@Justin Phillips thanks! What companies do these?

Justin Phillips · Answer

@Steven Li @Christine Smith I'm a huge proponent of a very specialized 1st position Heloc tied to a zero balance sweep checking account. It allows you to pay down the balance with idle checking funds, thus saving a ton of interest. Along with that, you retain access to equity. Along with that, there's a 30-year draw period, lower interest cap, and much more flexibility than a more traditional Heloc.
My wife and I have one on our property, and it's been an incredible financial tool

Good places to get a HELOC for a property in CA?

Good places to get a HELOC for a property in CA?

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