HELOC on rental duplex in minneapolis

[Randy Bloch]

I am looking for some suggestions on banks or credit unions that will do HELOC on a rental duplex. I have done them with RCU royal credit union, but they have a 50k max. Any other suggestions

[Tim Swierczek]

Quote from @Samuel Lindgren:

Quote from @Tim Swierczek:

Quote from @Kenneth Freire:

@tim 

@Tim Swierczek How high does she go for owner occupied? I was about to go with lower.com for 95% but open to doing someone local. 

Kenneth, Nicole is only licensed to work on business purpose loans on investment properties.  I can connect you with a lender that will do up to 100% 175K max loan amount.

Hi Tim - Could you sharethe lender with me as well? I'm seeking a HELOC on a rental property that will go up to 95%. Certain lenders seem to have tightened to 80% LTV caps for investment property HELOCs at this time, but if you know of any that would go to 95% that'd be helpful. Thanks!

Hey Samuel,

I've been an investor, broker, and lender for 21 years and I've never encountered a lender who will do a refinance HELOC to 95% on an investment property. To be clear there were 100% purchase money seconds up to the 2008 crash, but those disappeared at that time and have not come back 15 years later. 

I don't think you will ever find it, and not because I haven't seen it but because the FDIC will not allow it.  You would need to find a HELOC from a non-FDIC insured lender and those lenders do not have enough profit incentive to take on such a risk for a product that is not all that profitable compared to their lending alternative. I can tell you that for a very short time in 2017, Diversified Credit Union in Minnesota (NCUA insured) offered a 90% HELOC on investment properties.  I got one and referred a handful of others.  It was a great program for me but not for the credit union. Shortly after I closed my loan the CU had its NCUA annual audit. When the NCUA found out they were issuing 90% HELOCs on investment properties they immediately shut the CU's ability to lend on real estate. All loan officers were terminated, and my rep is still a friend to this day.  years later the CU was in such trouble due to its loss of revenue from no lending authority, that it had to merge with SPIRE CU, and that is how I became a member of SPIRE CU and my friend had to find a new job.  For this reason alone I feel your efforts are waisted looking for a 95% NOO HELOC.  Feel free to PM me if you would like to talk further.