I've had a number of people tell me that it is possible to get a HELOC on a rental property. But I've had an even larger number of people tell me that it isn't possible. Personally, I've never found a lender who would be willing to give a HELOC on a non-owner occupied property.
[addsig]
I have never had any one ask me about a HELOC on a NOO. I can look into it if you PM and give me some of more details to work with. You might just want to consider doing a NOO cash out refinance. Have you explored this option?
Respectfully,
Phil
Phillip Herrejon
President of the Chicago Real Estate Investment Club
Investment Property Finance Consultant
312.375.7132
**Please See My Profile**
Speak with a commercial lender at your local bank. It is possible. Typically, your credit score is going to dictate what the terms are. I have been told that the min FiCO has to be 659 to 680 and they will go up to 75-80LTV.
I have never had a problem getting a HELOC on my rental properties. As a matter of fact I am closing on 1 this Thursday. Terms are 3% interest only, 75%LTV. I have 4 HELOC's and 3 are on rental properties and all 3 are with 3 different local banks.
I recently purchased 3 properties: 1 3-unit, 1 6-unit and 1 7-unit. All have positive cash flows. I made high down payments and got low fixed rates. I have about $200k of equity in these 3 houses. I talked to my broker about a line of credit so that I can buy more. But he says he doesn't do line of credit on rental properties. Should I talk to a local bank or are there brokers who specialize in rental properties? I am in CT.
Have you thought of using your equity to purchase more RE? Just ask the seller of a high equity ppty to lend you 20% or more (secured on your ppty) of the purchase price.
You close and own his ppty, have utilized your equity (and maybe have even cranked some cash out)
We are taking money out of our HELOC to put 20% on a duplex and financing 80% of the purchase price. Now I talked to the lender and he mentioned that it would be possible to open a 2nd Deed of Trust 1 day after COE. What does this mean? Does this mean I can apply for a HELOC on the duplex after COE and get the 20% that's left on that property? TIA for the replies.
I've had a number of people tell me that it is possible to get a HELOC on a rental property. But I've had an even larger number of people tell me that it isn't possible. Personally, I've never found a lender who would be willing to give a HELOC on a non-owner occupied property.
[addsig]
I have never had any one ask me about a HELOC on a NOO. I can look into it if you PM and give me some of more details to work with. You might just want to consider doing a NOO cash out refinance. Have you explored this option?
Respectfully,
Phil
Phillip Herrejon
President of the Chicago Real Estate Investment Club
Investment Property Finance Consultant
312.375.7132
**Please See My Profile**
Hi mrlee,
I haven't found a lender that will do a HELOC on rentals, however as Phillip said, I almost always do a cash-out refi.
Would that be a problem for you to refiance? If so, there are other options for you, it just depends on what you are going to need the cash for?
BAMZ
[addsig]
Speak with a commercial lender at your local bank. It is possible. Typically, your credit score is going to dictate what the terms are. I have been told that the min FiCO has to be 659 to 680 and they will go up to 75-80LTV.
I have never had a problem getting a HELOC on my rental properties. As a matter of fact I am closing on 1 this Thursday. Terms are 3% interest only, 75%LTV. I have 4 HELOC's and 3 are on rental properties and all 3 are with 3 different local banks.
Repoman
Repo - what bank did you use? Also was it single family homes or multifamily? Did you have to claim you were living there?
Thanks
I was actually thinking about putting one on a 20+ unit with about 200K in equity.
I will re-post my question here:
I recently purchased 3 properties: 1 3-unit, 1 6-unit and 1 7-unit. All have positive cash flows. I made high down payments and got low fixed rates. I have about $200k of equity in these 3 houses. I talked to my broker about a line of credit so that I can buy more. But he says he doesn't do line of credit on rental properties. Should I talk to a local bank or are there brokers who specialize in rental properties? I am in CT.
Yes and the LTV's can be as high as 95% check out my profile and call me.
Have you thought of using your equity to purchase more RE? Just ask the seller of a high equity ppty to lend you 20% or more (secured on your ppty) of the purchase price.
You close and own his ppty, have utilized your equity (and maybe have even cranked some cash out)
I broker them all day through CENTEX WHOLSALE.
[addsig]
Phil has agreed to help me.
Thanks Phil.
My question is sort of on-topic with this thread.
We are taking money out of our HELOC to put 20% on a duplex and financing 80% of the purchase price. Now I talked to the lender and he mentioned that it would be possible to open a 2nd Deed of Trust 1 day after COE. What does this mean? Does this mean I can apply for a HELOC on the duplex after COE and get the 20% that's left on that property? TIA for the replies.