You might check with smaller outfits too like Co/Lab lending, Preferred Mortgage, Aceland Mortgage, and co-ops/credit unions.

The tenant pools are great, as we are the State capital, we have two MAJOR hospitals, government jobs, large developments happening (out-of-state union workers), MSU, Lansing Community College, and so on. 

We bought it for $225k with a 3.125% mortgage and 1) are interested in keeping it as our first rental. 2) We are thinking about using some of the equity (maybe $50k or less as a HELOC to combine with existing cash for our next home down payment that we can convert to a HELOAN through our credit union).

Check with a few local credit unions as they usually have the best HELOC offerings.

The good thing is, she is now researching credit unions and banks for a car loan.

I am planning to open a HELOC with my credit union soon and use the method @David Dachtera put forth in this thread.

This is very common with local banks and credit unions - they dont have the infrastructure or volume to sell into the secondary market and simply choose not to offer those products in their business model. 

hi @Alvin TaverasMortgage Broker here, i've been referring clients out to Credit Unions for their HELOCs. we have a handful of lenders that can do them, but i'm finding the juice is not worth the squeeze in the broker/ wholesale world.

In addition to brokers, I would also suggest speaking to 1-2 regional banks/credit unions.

@James HumphreyI would suggest speaking to local banks, and credit unions.