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Old 02-11-2019, 03:44 PM
 
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I am shopping around for a HELOC for my investment property.

So far Santander is the best bank that I have been able to find. Does anyone know of any other banks that do this business?
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Old 02-11-2019, 04:56 PM
 
Location: Bergen County, NJ
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How many units is the collateral property?
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Old 02-11-2019, 05:21 PM
 
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2 units
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Old 02-11-2019, 06:59 PM
 
Location: Bergen County, NJ
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I remember you asked this a while back... are you certain Santander does it? I’ve never heard of banks doing this as it’s considered high risk.

Now if you live in one of the units, or can successfully pretend like you do, that’s a different story.
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Old 02-11-2019, 08:55 PM
 
625 posts, read 793,962 times
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Quote:
Originally Posted by HudsonCoNJ View Post
I remember you asked this a while back... are you certain Santander does it? I’ve never heard of banks doing this as it’s considered high risk.

Now if you live in one of the units, or can successfully pretend like you do, that’s a different story.
Yes, they offer HELOC for investment properties. I called today and they confirmed. The rate is much higher but they offer it. I’m just looking for a 8-12 month loan to fund construction costs.

TD Bank offers them too.
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Old 02-11-2019, 09:22 PM
 
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Not sure what your plan is .
Where would the money come to pay it off in 8-12 months?
If you are going to hold the property and there is enough equity why not do a cash out refi?
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Old 02-12-2019, 07:43 AM
 
625 posts, read 793,962 times
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I own two (2) family homes with amount $200k in equity from both. I have enough cash to buy a property in cash, which I plan on knocking down. I need to use the equity lines to pay for my construction costs to build a new 1 family home. I plan to "cash out" of the new property into a primary mortgage once construction is done. That will pay off my two lines of credit.

I don't want to do a cash-out refi because I only have 11 years of mortgage left on both properties. The rates are 3.125% and 3.75%. I don't want to go back out to 15-30 years.
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Old 02-12-2019, 11:02 AM
 
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Quote:
Originally Posted by jdacunha View Post
I own two (2) family homes with amount $200k in equity from both. I have enough cash to buy a property in cash, which I plan on knocking down. I need to use the equity lines to pay for my construction costs to build a new 1 family home. I plan to "cash out" of the new property into a primary mortgage once construction is done. That will pay off my two lines of credit.

I don't want to do a cash-out refi because I only have 11 years of mortgage left on both properties. The rates are 3.125% and 3.75%. I don't want to go back out to 15-30 years.

OK,agree you could never get those rates again.

I would check out the local banks in the area of your properties.
They are much more flexible and easier to deal with than the big banks.
Most smaller banks will give 2nd mortgages fixed or adjustable but are strict with the Debt to Income Ratio
and you must have a high credit score.
Also the fees and rates are going to be much higher than a residential HELOC and qualifying will be much harder.
Even though you want to pay it back in a year I would not take a short term loan with a balloon in case things don't go as quickly as planned.

Last edited by beachouse; 02-12-2019 at 11:45 AM..
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