HELOC Help and Recommendations

[Cian R.]

Hi all,

The below scenario seems unlikely, but is anyone aware of a lender that would provide a HELOC under the following circumstances:

• Property held in an LLC
• Not currently livable – needs new plumbing and electrical
• HELOC based on the value of the property, not the purchase price (purchased less than 12 months ago at a discount)

If not, any other suggestions? The property was purchased with 100% equity. I was looking for a HELOC before taking out a 30-year mortgage in a few months based on the POST-renovation value.

Thanks

[Cian R.]

So after speaking with 30 individual lenders, I’ve reached the following conclusion:

No Lender will give you a HELOC if the property is held under an LLC. You will have to go with a Business Line of Credit or a Renovation Loan.

However two tidbits of useful information that someone may find helpful on their journey:

• KeyBank National Associates will match HELOC rates for a Business Line of Credit if the LLC is securing a personal home
• Mid-Hudson Valley Federal Credit Union offers 1.99% introductory rate for HELOCs for the first six months – the best I’ve seen in my research of 30 lenders