Heloc options and advise

[Edwin Zamora]

Hi bigger pockets community! Im hoping someone can throw some advise my way. Here's my situation. I am currently working on buying a second home to house hack. I plan on using the equity I have in my current home to fund part of the down payment and renovations needed to get the building rent ready on the second deal. I've spoken to multiple banks on getting a heloc but here's my dilema. I don't want to pay interest on money that I don't need until  I find the property, but the majority of lenders I've spoken to require me to take out a large initial withdrawal at closing  $15,000 $20,000, $45,000 etc. 

Ive only managed to find one bank that offered me me a no initial withdrawal amount required which was Citizen Bank. The issue is that looking at online loan reviews of that bank a lot of them are bad. No communication, App would not work, people could not access their funds etc. 

Has anybody used this bank before? Or could anyone recommend a bank that does helocs with no initial draw at closing?

Here are the details on the loan 

Amount borrowed-$110,000

Variable Interest Rate starting at-7.25%

10year draw period 15year repayment period 

No closing cost, early repayment fees, early termination fees, or any other fees besides a yearly $50 account fee waived the first year. They cover the appraisal, title exam and recording fee.

Another option I have is a fixed Heloc from Spring EQ

Amount borrowed-$80,000

Fixed rate-10.875%

10 year draw period  20 year repayment 

Origination fee-$1395

Full Appraisal fee-$540

Closing cost-$2864

Initial draw of-$20,000

Any thoughts, comments and advise is appreciated!