High LTV HELOC in Austin

[Adam Morrell]

Hey all greater austin brain trust! Anyone recommend a couple good banks or credit unions that do high ltv helocs? Best I've found so far is 80%. Anyone know of ones that will go 90-95%? Thank you in advance! Adam

[Alex G.]

I talked to Sonora, thanks to @Stephen Stokes reference and here is some of their loan fees I got quoted for the 85% LTV on rentals:

1% loan origination

Attorney prepared loan docs (500-1,500)

Appraisal (1,500-3,000)

A typical 1-4 family appraisal shouldn't run more than $600. Legal fees should be within $250-500 for loan docs. Depending on a price point, the money they charge for appraisal and legal docs could easily amount to extra 2-3 origination points on the loan. 

When added to the formal 1% origination they quoted, you might just wipe out a good chunk of that extra 5% equity you're trying to get from them. And when you consider their rate of about 6% for this 85% LTV deal - you are better off with a conventional 80% refi at 4.5%, with low appraisal and doc prep costs and without origination fee.

On top of everything, I was quoted a 6-8 weeks closing AFTER submission of all docs. That is something I don't even understand coming from a small reginal bank.