All Forum Posts by: Brittany Minocchi

Cash out refis, HELOCs or HELOANS are all options to access equity. The biggest difference is the HELOC/HELOAN is second position, so they won't affect the current rate(s) you have. HELOCs on investments can be tough to find unless they're single family and not in an LLC. They could be fixed or variable rate with different repayment terms.

Is this for a primary residence or investment property? If primary residence, there are a few lenders that will go down to 500. Don't expect your rate and terms to be pretty, though. 

Congrats on the upcoming closing! As a fellow Ohioan, I find it to be a great place to invest. 

Yes, it's possible as others have mentioned. HELOCs are hard to come by on investment properties, HELOANs are a bit easier, a DSCR cash out is probably your best bet. Depending on credit, expect 65-75% LTV on a refi.

Hey @Chris A.

HELOCs on rentals are tough to find these days, the only one I know of is for single family properties that aren't in an LLC. HELOANs are easier to find if that's an option you're open to.

Home equity loan on a rental will be easier to come by than a line of credit, keep in mind LTV will be lower compared to owner occupied…probably around 70-75%.

There are HELOCs and HELOANs available on investment properties, usually anywhere from 70-85% CLTV depending on the product and your FICO. Rate may be fixed or variable. Minimum draw varies by lender, the lowest I've seen is $25k. Some require a full initial draw. Prepayment penalties could be a factor as well, so make sure to check on that so you don't run into problems later.

Most HELOCs have variable rates, but not all. As others have mentioned, they're available on investment properties but not as common as a closed end second. Expect a lower LTV compared to an owner occupied HELOC and a higher FICO requirement.

If you don’t want to lose your low interest rate by refinancing, a HELOAN would be an option. These also can be either fixed or variable rate. Sometimes you have to make a full initial draw, others have minimum draws….there are a few different options out there. 

Hi @Amir K.

HELOCs and HELOANs would both be a viable option if you don't want to refinance and lose your current rate. There are lenders that will do them on investment properties, it's just a little harder to come by and terms sometimes aren't as good compared to the same product on an owner-occupied property. Depending on FICO and product, LTV will vary. Happy to connect if you'd like to discuss.

Thank you for clarifying - there is an option for single family homes (investment properties included) that are not in an LLC. Feel free to send me a message to discuss.