Property Manager · Jacksonville, FL · Member since 2018 · 514 posts · 470 votes
Hi everyone. I know back before the housing crisis it was possible to get a HELOC on a rental property, but is this still possible today? Have any of you recently done this? We have one single family home and looking to get more. Just wondering if this route would be an option. Thanks!
Hi everyone. I know back before the housing crisis it was possible to get a HELOC on a rental property, but is this still possible today? Have any of you recently done this? We have one single family home and looking to get more. Just wondering if this route would be an option. Thanks!
Hey Elenis did you end up getting approved for Heloc?
I have 3 rentals free and clear, running out of cash Little by little and want to purchase a 4th with heloc. (It needs to be cash so cant do mortgage)
Rental Property Investor · Chapel Hill, NC · Member since 2019 · 120 posts · 119 votes
6y
@Mario Am
Hi Mario,
I opened a HELOC on a rental of mine with PenFed Credut Union about a month ago, amidst everything going on with COVID19. 80%LTV, 10/20 draw and repayment periods w/ interest only repayments during the draw period. Very easy process - took about 3 weeks from first inquiring to Closing. Shoot me a message if you have other questions!
Even if you are not ex-military, you can still join PenFed by donating small amount for US military. I believe I donated $17 few years ago when I joined it for my autoloan about 4 years ago.
Someone posted that you cannot use the heloc from pen fed on investment properties, how does one get past that without lying?
thx
Hi Adam,
You don't need to do anything special - PenFed specifically offers HELOCs on Non-Owner Occupied Homes, including rentals. I know this because I closed on my HELOC back in April and am using that to fund a purchase of which I'm closing on Tuesday. I've seen several people post that "you can't get a HELOC on a rental". Respectfully, I believe most of these posts are from people who have called 2-3 banks and been told no, so they assume you can't do it. Or their contact at a bank told them it can't be done and they assumed it to be Gospel truth. I challenged someone about this very topic on a different forum, and she admitted that she had only asked 1 bank and they told her no, so she assumed it was no everywhere.
This is not true...just because it's hard to find doesn't mean it doesn't exist. There are several previous posts on BP forums where people are asking this same question. Off the top of my head, I remember that both PenFed and TDBank offer HELOCs on rental properties. I think Huntington bank might have as well, but I can't remember.
Bottom line - I've used PenFed to get a HELOC on my rental property. Yes, HELOCs on rentals are hard to find, but several banks can offer this. You just have to find them and be persistent.
@Steven Griffith Turns out they don't take self employed, they only loan off of W2s which is very weird considering it's equity based. But thanks for reaching out.