HELOC on Rental Properties

[Eric Pope]

Hello BP community. Does anyone know where we can get a HELOC on rental houses that still have mortgages on them? I would like to pull some equity out of a couple of rental houses in the form of a line of credit. Of the local lenders I have contacted, most have said they do not offer lines of credit on investment properties. One lender said they would, but only if the properties were in their local area (which they're not). Another lender will offer lines of credit on investment properties but not in second position behind a mortgage.

Some have asked why we don't just consider a cash-out refinance on those properties.  Two reasons.  First, we want access to the cash, but we don't have an immediate need for it yet so we're not interested in significantly increasing a mortgage payments and reducing our cashflow just to pull out some equity.  Second, I don't want to lose our financing terms, as both of those particular properties are financed long-term at 3.25%.

Any suggestions would be greatly appreciated!

[Kerry Baird]

I've gleaned these lenders from the kind people on BP. I have used PenFed and TD Bank for HELOCs on investment property. Post back if you find another lender who serves you well, and I will add them to my list and pay it forward. Most of these were sourced pre-CV19, so eat the fish and spit out the bones.

Ridge Lending All in One, first position HELOC. They are still doing these, as long as the property is in the owner's name.

AFCU does 80% LTV on NOO. Utah

Americafirst 80% LTV on noo 65% LTV Utah

Arvest Bank AR, OK, AL, MO

Bank of the west

BB&T will loan on a rental portfolio

BBVA Compass

Boeing employee credit union

California: Cal Coast Credit Union and Fremont Bank

Citizens Bank -Minnesota, only in-state. Kyle Potswald

Citizens first position HELOC

CMG a financial 70% LTV

East West Bank, up to 60% LTV with "no docs"

Figure 80% on a rental, not in LLC

First Florida Credit Union https://firstflorida.cumortgag...

First Commonwealth

Great Lakes Credit Union

Veritex , Texas HELOC

HSBC 70%, for premier clients only

Huntington 75% LTV

Hurst Lending and Insurance Investment property: HELOC in Texas. No seasoning.

Key Bank, FLorida flexible lender, HELOCs on second homes and rental properties. 90% LTV on primary.

Merchants Bank MN See Pavel Ushakov

PenFed - max 3 other properties, 89% LTV

Regions- yes HELOC but no LOC

SCCU Florida 70% LTV, 6.25% interest only, not LLC

Signature Federal Credit Union 75% LTV

Sound CU "non-owner occupied HELOC, capped at $150K and interest rates are prime + 2%, 3% or 4%, based on credit, not to exceed 70% ltv."

S&T

TCF Bank

TD Bank

TIAA Direct was EverBank

Tower FCU, all states except TX, max 45 DTI, green card ok. Max of three rental properties. Automated appraisal.

Trustco

Union Bank, specializes in noo HELOC. KCMO, NE

Union Bank, MUFG.

US Bank

Vectra Bank

Wisdom from Ann Bellamy:

I also never keep much cash in a bank account in the same bank where I have any mortgage. For example, I have a mortgage and operating account at Bank X for one of my businesses. I pull out most of the surplus cash from the operating account and put it in an account owned by the same company but in Bank Y. That way I get to determine how it's used, not the bank.