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Profile picture for portageline

how can i get a home equity loan or line of credit on my investment properties?

I have rental properties free and clear but I cant find a lender that's willing extend me credit because i don't live in the home.
  • April 12 2011 - Northeast
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Answers (4)

Profile picture for frankc45
there are still some niche lenders out here who will do it. The rates may not be so attractive but they will be better than they were in 2005 to 2007. Rates are at all-time lows. The property may still even cash-flow which really puts the lender at ease. As mentioned previously, 75% is probably the tops in LTV.
For a [hotlink removed by Zillow moderator]  expect about 1.5% higher than market rates so 4.5 to 4.75%.

Best of luck.
  • October 27 2011
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You can do 75% LTV cash out on any and all investment properties with fannie mae for a conventional loan.  
  • April 14 2011
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Where is the property located and how much are you looking to borrow?
  • April 13 2011
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Instead of focusing on residential lenders (banks) that offer home equity lines and loans you need to concentrate on commercial banks that will look at your equity line or loan request the same way they do any other commercial loan or commercial line of credit to a business:
1) what is the loan to value ratio your loan request represents (property values minus existing mortgage debt) 
2) what debt service coverage ratios exist (the commercial loan version of debt to income ratios - answers what percentage above 100% of the debt service requirement is serviced by the income stream from the properties)
3) how strong is the borrower financially - liquid financial assets and income outside of the properties
4) what level of experience does the borrower have in accessing, and repaying borrowed funds as agreed
5) what is the borrower going to do with the borrowed funds and how does that impact the ability to repay

Sit down with a local, community bank commercial lender and discuss and you'll know more than when you started about what good local banks are looking for when extending commercial credit.  
  • April 12 2011
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