N.O.O. Stated Helocs?
I am getting ready to close on a couple of sfr investment properties that are currently rented. I am purchasing them way below appraised value due to a motivated seller. question, can I get a heloc quickly on these properties? how soon? is it possible with NOO and I also have to go stated income so I know its going to be tough. I am not to worried about a higher interest rate, I only need the money for a short time. if not does anybody have any other suggestions? and if you think it can be done please let me know the name of a lender who can do it, thanks.
For starters I suggest you contact the lender or mortgage broker you are presently dealing with. (hello) Your unique situation may involve having to pick up the phone ,call various brokers and start asking them questions, this is the only way your going to weed out the lenders who will meet your particular situation. it will be more beneficial for you to do your homework and to gain the info. and knowledge first hand directly from the source.
I tell you lately I have seriously considered quiting this website. I cant believe all the ignorant responses I keep hearing from people. In case you dont know thats why people join this website, to ask people questions about situations they may have gone through so they can save time in there search. yes genius I have contacted the lender I am using and they wont do it. I have emails and calls in to about 15 different lenders and I will see what they say. In the meen time I figured I would post this question and see if someone could save me time and let me know of a lender they used. I noticed several people looked at this post and decided not to reply, I assume they dont know of any answers to my problem and thats ok, thanks for taking the time to read it. so in the future if you dont have anything helpful to say then please dont bother writing something so ignorant. thanks for nothing, you have given me good reason to change my name. :-x
just deal with a mortgage broker...let them dig out the lenders that will work with you...good luck...cwal.
What LTV would you need on the HELOC?
dlitedan,
It is going to very hard to find a lender to do this.
Most HELOCS are done with local banks.
The profit on them is so small that most brokers will not do stand alone HELOCS. And most lenders who do them don't do stand alone HELOCS. So you would have to do a complete refi.
If you do find a bank that will do it my guess is your looking at a LTV of around 80%.
danjames,
Your responce is quite surprising considering that you have posted questions about HELOCS.
Just to add some weight, cashman is right on the money. A NOO HELOC is a very rare beast. A NOO stated HELOC I've yet to see. If you find one, the rate and/or terms would be so severe that most wouldn't want it anyway. So the short answer to your question is no, you can't do it.
Best thing, as cashman said, is to find a lender, and going thru a broker would be my suggestion, that will do a cashout refinance with no seasoning. They are out there. Again, the rate and/or terms may be a bit hard, especially for a stated loan, but you'll be able to get your funds.
Roger
They are correct , I tried to do a heloc on my rentals and all I got back was that I have to refi and pull. I also would like to know if someone has done this.
Thanks to all for the good feedback. you just saved me a lot of time and research, I really do appreciate it. I will start looking for a broker to re-fi and cash out.
One thought that I have is that a local bank (not a chain/franchise) may be willing to give you a blanket line of credit on your rental properties. The loan would tie up all of your properties but would allow you to pull out the money you need. If these are long term investments, that shouldn't be that great of a problem. Make sure the loan has the option to get the loan released from the property should you decide to sell.
I think a local bank would look at this approach better than a separate loan on each one.
GOOD LUCK
myfrogger,
Great responce if I may add one thing some of the bigger banks will also do them but stay on the commercial side.
With the bigger banks often one side does not know what the other does.
I've had some luck with:
Washington Mutual
Citibank
Full Spectrum Lending and
Chase
Of course there are restrictions:
1. 40-50% Debt/Income ratio
2. Liquid assest equal to 50% of stated income
3. LTV 70-80%
I end up doing most of my transactions with Washington Mutual. Good Luck
I was told by Bank of America this morning that I could do a HELOC on investment property. My local banker qouted 80% LTV, max of $100K and an extra 1/2 point for NOO, extra 1/4 point if I don't use auto debit. I just received an email back from Quicken Loans stating "HELOC’s cannot be tied to investment properties. This is a industry-wide rule."
Which to believe...hmmm???
I was hoping to go this route as I can get a HELOC from BoA for no cost eliminating closing costs on a 1st mortgage.
Come to me all those toiling looking for a Heloc for an investment property, It is possible to receive. I am a mortgage specialist and have been for 7 years, I have worked with numerous lenders and I know a couple that will do Heloc's For N/O/O Investment properties. The catch? Heloc is in 1st position 10 yr interest only after 10 yr turns into 30 yr amortized loan, minimum loan amount 75K . 80 % LTV max on investment prop.
Stated N/O/O no, stated 2nd home yes.
Thanks again everybody. I just got off the phone with washington mutual and heres what they can do. they WILL do helocs on NOO up to 80 percent of the value.but, if it is under a year of ownership then they loan you 80 percent of the purchase price,not appraised value. and if you have a 700 credit or above they will ask for your employer info and income but they will not verify it, essentialy making it a stated income noo heloc. so, thanks again for all the help. couldnt of done it without ya.