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Updated over 4 years ago on . Most recent reply

Any Triangle Banks that will do HELOC on Rental Property?
Hey BP,
Have a rental property in Durham that has some equity and wondering if there's anyone on the forum who knows of lenders either in the are or online who would issue a HELOC on a rental?
Cheers!
Dan
Most Popular Reply

I just closed on a HELOC mid-April on my rental - Pentagon Federal Credit Union (PenFed). I know of several others who have used them for HELOCs on rentals. You do not have to be military to get an account.
Terms were 80% LTV on rentals, 10 year interest only draw period, 20yr repayment period. Rate is variable, currently at 4.75%. PenFed paid all closing costs. If you close the HELOC acct completely within 3 years, you have to pay back closing costs. There is an annual fee of $99, unless you've paid that or more in interest, then the fee is waived .
Great experience thus far with PenFed - I highly recommend!
TD Bank also does it, although the LTV wasn't as good when I was looking for a lender. Wells Fargo told me they used to, preCOVID. Not anymore.
Any other questions, let me know!