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Equity loan in investment property

Hi, we just purchased a new home and decided to keep our old home and rent it out. We are trying to get an equity loan for at least 10% of the home value however we only have about 20-25% equity on it. We have a VA loan so originally it was 100% financed. Is it even a possibility? I know on owner occupied I can get as much as 95% LTV out. Any lenders that are willing to go up to 85% LTV on the investment property? Refinance is not an option due to exceeding VA county limits.

Thanks!
  • April 02 2014 - Rose Hill
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Answers (3)

As was mentioned, I do not think this is possible.  For example, at the bank where I work, we do CLTV up to 90% on owner occupied, but only 60% on non-owner investment property.
  • April 08 2014
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Most banks/lenders cap their HELOC programs at 80-90% combined loan to value even on primary residences. 

It is unlikely you will be able to get a HELOC for an investment property with a CLTV that high. 
  • April 02 2014
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This is going to be a tough loan to find, if it is possible. Default rates on investment properties are much higher than they are on primary residences, so any bank lending over 80% of an investment property's value is really taking a risk. Risk typically equates to high interest rates. I wish I was able to help more, but all I can say is that I am not aware of anyone in the industry doing these loans right now. 
  • April 02 2014
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