Posted by PeterN on November 01, 2003 at 22:40:19:
I am raising about $800K in this manner. I went to a mortgage banker who shops the deal with multiple lenders. Prime + 2.5 for non-owner occupied and prime for owner occupied. The mortgage broker wants 0.5 point for his efforts, which is OK. No points for owner occupied.
You will have to find the right kind of mortgage banker who can do this. Obviously, a good credit score and keeping the LTV below 80 % makes the job easier for the mortgage banker. Think of the HELOC as a second mortgage with a checkbook. Good luck to you.
I’ve read that you can’t get a HELOC on an investment property. Is that true? What are the options to get money out for buying more properties then after you buy your first investment property?
Re: HELOC on investment properties - Posted by John (Nevada)
Posted by John (Nevada) on November 03, 2003 at 23:18:09:
I have purchased several homes this year using a HELOC in 1st position. The loan is 4% interest only from Washington Mutual for non-owner occupied. These homes cash flow over $1,000 per month each.
Re: HELOC on investment properties - Posted by ScottM (OH)
Posted by ScottM (OH) on October 31, 2003 at 21:10:22:
If you are in Ohio, I know of a source that will go up to 90% LTV on an NOO HELOC, if you have a 680+ FICO.
You have to refi to get the LOC, which is piggybacked. The up-front fees are a little high, as you might expect, but can be worth it if you are unlocking a substantial amount of otherwise dead equity.
LOC rate is @ prime +2.
Contact me directly, and I’ll give you the contact info.
So far I have not found a lender who will. Although if you have a banking relationship you can get a HELOC on an investment property vs. a mortgage. It’s the same thing really but you would have to refi for the HELOC vs. refi for the mortgage.
However, generally investment property is considered by lenders to be very risky that is why they don’t do them.
Re: HELOC on investment properties - Posted by Marc - NH
Posted by Marc - NH on October 31, 2003 at 07:31:03:
Yes it is true. I tried earlier this year to get one and the bank said no. I had to get one on the home we live in. You could certainly refi if you have enough equity and take cash out that way.