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Can't find home equity loan/line of credit for my rental property with no first in Calif.

I need 50K to fix up my house to rent it out, and can't find a lender.  I don't have  a mortgage on my house (in California), and I live in a rental in another city.  I'm willing to borrow 100k instead of need be, or maybe borrow a lot and use it for college costs or as a down payment on a primary residence here. I was reluctant to get a first on it, because I might want to buy a house here and don't want to jeopardize that.
Anyone know any lenders?
or
Want to tell me to get a first instead?
Any advice would be appreciated.
Thanks.
  • July 26 2011 - Mountain View
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Answers (5)

If you have not figured this out yet, I would be happy to discuss it with you, just get in touch through my profile.  There are a few good solutions, but would require an application to figure out the best one for your needs.
  • August 06 2013
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If your credit is strong, try Union Bank of California for an equity loan on an investment property.

If credit is not strong, private party financing would be an option for $50,000 loan.
  • July 27 2011
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Frank:

That was my point--a new, standard first mortgage won't jeopardize her chances more, the HELOC will with those lenders who use a standard 2% of the total credit line amount as a payment for qualifying purposes rather than the actual payment.  Of all the wholesale and retail lenders out there, I know of only three who will use the actual payment reported on the credit report on a HELOC for qualifying purposes.  

I do agree that she should sit down with a qualified mortgage advisor to discuss her overall financial picture and future financial needs and goals.  
  • July 27 2011
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Getting a standard first mortgage on an investment property will not jeopardize your ability to get a first mortgage on a new primary residence any more so than getting a home equity loan/line.

You mentioned down payment and potential college costs which speak to the possibility of additional future indebtedness.  Based on this I suggest that you speak with a mortgage consultant and review all of your liabilities and assets.  Your mortgage consultant should then be able to analyze the best overall mortgage debt structure (across your investment property and across your potential future primary home purchase) to minimize your overall after tax interest expense across all of your current and potential future debts. 

  • July 27 2011
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If there is a chance that you'll be buying a primary residence in the near future, you may be limiting your lender choices by getting a HELOC 1st because of the way many lenders will calculate your payment on the HELOC. Many will use a payment much higher than the actual payment. If you get cash out with a fixed-rate loan, lenders will use the actual payment when calculating your DTI. If there is or will be no problem with your DTI and you do want a HELOC, try US Bank. They do 1st-lien HELOCs, but I'm not sure if they do them on investment properties.
  • July 26 2011
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