Difficulty obtaining Heloc on 4-plex in TX

[Katherine Wentz]

We bought a 4-plex in TX two years ago. We occupy one of the units and rent out the other three. Having difficulty finding a lender to do a Heloc. We attempted to go with Wells who said they could do it and turned around saying it was n/o/o and wouldn't do more than 70% CLTV. Looking to do 80%. Does anyone know of a lender who will loan on 4-plexes in Texas??? Help is greatly appreciated

[Bill Pate]

You are probably going to have a really hard time. In my experience banks will give you every excuse in the world why they won't lend on a property when in the end it boils down to they just don't want to lend on a rental. I know you live in one of the units, but the loan officer is going to look at it like you are borrowing on an investment property. I own 6 rentals with no mortgage and couldn't get a HELOC on any of them. The banks wanted me to have six months of operating expenses on hand to do a HELOC. I told the guy if I had 6 months of expenses I wouldn't need a loan!! I ended up working out financing a different way. Don't give up. Very smart move by the way buying a four-plex as your primary residence. I wish I had done that 20 years ago when I bought my first house!