I need clarification with my plans to do a HELOC on my home
I've been getting conflicting advice and I want to get clarity on the matter. I bought a home in 2021 but it was too small coz my family got bigger. We moved out and my wife ended up buying another home. I co-signed on the loan and rented the first house we used to live in. I'm trying to do a HELOC on the home and the banks are saying they can't do a HELOC on investment properties. Is this accurate? I've heard that there are banks out there that do HELOCs in my situation. TIA! by marciano404 from Charleston, South Carolina. Jan 19th 2023
Dave Skow (daveskow)
#15 ranked lender in Washington - 455 contributions
thats correct - the majority of heloc lenders will not offer the program on a rental property ....The few lenders that are able to will reduce the loan to value guideline and also have a higher price for the HELOC ....check with your bank and also with the lender that is holding the present 1st mtg as s starting point
Joe Metzler (JoeMetzler)
#17 ranked lender in Minnesota - 4,848 contributions
That is sort of correct. The vast majority of lenders will NOT offer a home equity line of credit on an investment property, but a small number of lenders will, at greatly reduced loan-to-values. Shop around a bit, you should be able to find one. I lend in MN, IA, ND, SD, and WI. Find me at FirstTimeHomeBuyer-MN.com, although I do all loans, not just first time buyers. | Cambria Mortgage | NMLS 274132 | (651) 552-3681
Ask our community a question.
Get an answer
Related Questions
