All Forum Posts by: Patrick Rich

Is it showing actual losses or paper losses due to depreciation?

There's another thread about Penfed no longer accepting Investment property Heloc applications. So it may be that yours is caught just prior to that decision and they may be denying it since they're trying to reduce their risk profile with rising interest rates. That's just conjecture on my part, but that may help explain some of this. 

Most HELOC's use Fannie Mae / Freddie Mac underwriting guidelines, but not all. As a HELOC lender, they can make their own rules, so its surprising to hear that because your rentals are showing a loss (most do) that they wont take the entire income and overall debt ratio into account? If they denied you just because your rentals showed a loss, but your actual debt ratio was within tolerances, then they have crazy rules that wouldn't be applied by most lenders?

The only thing to do is keep shopping around. I had one of my own internal HELOC investors turn me down for a HELOC. I then went to a local credit union and got 90% at 3.49%, so in the end, I'm really happy the original lender turned me down. Crazy to thing 730 + credit scores and nice sized income with limited debts (no debt ratio issue) would be turned down, but it was for the best as I got way better terms than what my own lender had.

Just keep looking around. Best of luck.