Tapping Into RE Equity, Possibly a LOC?
Afternoon,
I am looking to tap into my rental property equity. I have been told that a HELO is not possible with rental properties, is this true? And what is the best path forward? Thanks.
~Andrew
Quote from @Andrew Pettit:
Afternoon,
I am looking to tap into my rental property equity. I have been told that a HELO is not possible with rental properties, is this true? And what is the best path forward? Thanks.
~Andrew
Hi Andrew, I'd be happy to explore this further for you. Just sent you a private message.
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Quote from @Andrew Pettit:
Afternoon,
I am looking to tap into my rental property equity. I have been told that a HELO is not possible with rental properties, is this true? And what is the best path forward? Thanks.
~Andrew
Hey Andrew,
You can do a HELOC on an investment property, however you may be capped at 70% CLTV and may need to draw $100k to meet the minimum loan amount. You will also need to qualify based on your personal DTI.
You may also explore a DSCR second Mortgage if you do not qualify for traditional financing. Lenders will qualify you based on the rents covering the 1st and 2nd mortgage payment. No personal DTI is required to qualify for this loan and you may borrow up to 75% CLTV (If the property is a long term rental)
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Lender California (#02161719)
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