Talk Irvine

General => Real Estate => General Real Estate and Mortgage Talk => Topic started by: sleepy5136 on August 05, 2021, 10:05:38 PM

Title: HELOC Options
Post by: sleepy5136 on August 05, 2021, 10:05:38 PM
Anyone recommend any bank for HELOCs? Big banks aren't doing it now besides BofA.
Title: Re: HELOC Options
Post by: USCTrojanCPA on August 05, 2021, 10:47:38 PM
Anyone recommend any bank for HELOCs? Big banks aren't doing it now besides BofA.

Bank of the West
PenFed CU
Wescom CU
Title: Re: HELOC Options
Post by: sleepy5136 on August 06, 2021, 12:28:22 AM
Anyone recommend any bank for HELOCs? Big banks aren't doing it now besides BofA.

Bank of the West
PenFed CU
Wescom CU
Thank you!
Title: Re: HELOC Options
Post by: Cornflakes on August 06, 2021, 04:35:39 PM
Took out HELOC from Wescom recently. Super easy process and they are by far the most technologically advanced CU I have experienced.
Title: Re: HELOC Options
Post by: USCTrojanCPA on August 11, 2021, 11:55:13 PM
Took out HELOC from Wescom recently. Super easy process and they are by far the most technologically advanced CU I have experienced.

One of my buyers is a senior level executive there and was telling me about their jumbo loan program that goes up to $5m with 25%.  I was surprised that they'd go up that high with only 25% down when the big banks require a 30-40% at $2.5m+ loan amounts. Their rates are fairly competitive too, I might give them a try when it's time to go unicorn hunting.
Title: Re: HELOC Options
Post by: hurijo on August 19, 2021, 09:40:31 AM
I've never done a HELOC before... is the paperwork and income verification at the same level as a refinance? Or is it more 'lax?
Title: Re: HELOC Options
Post by: Cares on August 19, 2021, 09:43:09 AM
HELOC is slightly more lax. Many banks like BofA require you to keep a HELOC open for 3 years and they will waive all the closing costs.

Just be aware if you get a HELOC, it makes it more difficult to refinance in the future. Lenders will require your HELOC bank to subordinate which costs time and money and it results in you getting a higher interest rate because of the subordination and CLTV.
Title: Re: HELOC Options
Post by: USCTrojanCPA on August 19, 2021, 09:49:44 AM
HELOC is slightly more lax. Many banks like BofA require you to keep a HELOC open for 3 years and they will waive all the closing costs.

Just be aware if you get a HELOC, it makes it more difficult to refinance in the future. Lenders will require your HELOC bank to subordinate which costs time and money and it results in you getting a higher interest rate because of the subordination and CLTV.

Some lenders like Loan Depot will require you to payoff and close a HELOC before they fund a refi (it slowed down my refi by 6 weeks as that's how long it took to get the lien release from the HELOC lender recorded after I paid it off and told them to close it). 
Title: Re: HELOC Options
Post by: the.irvine on September 26, 2021, 12:25:34 AM
HELOC is slightly more lax. Many banks like BofA require you to keep a HELOC open for 3 years and they will waive all the closing costs.

Just be aware if you get a HELOC, it makes it more difficult to refinance in the future. Lenders will require your HELOC bank to subordinate which costs time and money and it results in you getting a higher interest rate because of the subordination and CLTV.

What if you have the HELOC but dont use it? Does it take same amount of time and hassle to refi?
Title: Re: HELOC Options
Post by: Cares on September 26, 2021, 10:17:44 AM
HELOC is slightly more lax. Many banks like BofA require you to keep a HELOC open for 3 years and they will waive all the closing costs.

Just be aware if you get a HELOC, it makes it more difficult to refinance in the future. Lenders will require your HELOC bank to subordinate which costs time and money and it results in you getting a higher interest rate because of the subordination and CLTV.

What if you have the HELOC but dont use it? Does it take same amount of time and hassle to refi?

Yes you still have to either subordinate or close the HELOC.
Title: Re: HELOC Options
Post by: ndmaynard on December 03, 2021, 01:10:24 PM
Hi - I am planning to apply for a HELOC to help fund a landscaping project.  I have a single mortgage on the home that we purchased this year and current LTV is around 78% (we put down 20% at closing). 

Does the HELOC impact the First Mortgage at all, and would the first mortgage holder have issues/concerns if we are getting a HELOC that would effectively increase the total LTV to be above 80% LTV that we had at initial closing?  I am trying to determine if the HELOC would be completely independent from the first mortgage or if we would need to work with both a new lender and the existing lender to get approvals. 

Thanks in advance for any guidance.
Title: Re: HELOC Options
Post by: Liar Loan on December 03, 2021, 01:55:23 PM
Hi - I am planning to apply for a HELOC to help fund a landscaping project.  I have a single mortgage on the home that we purchased this year and current LTV is around 78% (we put down 20% at closing). 

Does the HELOC impact the First Mortgage at all, and would the first mortgage holder have issues/concerns if we are getting a HELOC that would effectively increase the total LTV to be above 80% LTV that we had at initial closing?  I am trying to determine if the HELOC would be completely independent from the first mortgage or if we would need to work with both a new lender and the existing lender to get approvals. 

Thanks in advance for any guidance.

The existing lender will not care and won't even be aware of the HELOC.  It's only if you go to refi the first loan that the HELOC may create some hassles.
Title: Re: HELOC Options
Post by: USCTrojanCPA on December 03, 2021, 02:24:55 PM
Hi - I am planning to apply for a HELOC to help fund a landscaping project.  I have a single mortgage on the home that we purchased this year and current LTV is around 78% (we put down 20% at closing). 

Does the HELOC impact the First Mortgage at all, and would the first mortgage holder have issues/concerns if we are getting a HELOC that would effectively increase the total LTV to be above 80% LTV that we had at initial closing?  I am trying to determine if the HELOC would be completely independent from the first mortgage or if we would need to work with both a new lender and the existing lender to get approvals. 

Thanks in advance for any guidance.

As LL mentioned, opening a HELOC will not effect the first mortgage lender because they are in a first position.  Keep in mind that most lender will only provide you a HELOC that has a maximum of 80% total loan to value but PenFed CU does HELOCs up to 85% and 90% total loan to value (at higher rates).
Title: Re: HELOC Options
Post by: zovall on January 10, 2022, 12:27:40 PM
Any recent experiences opening HELOC’s?
Any recommendations other than what Martin posted earlier in this thread? What LTV do they go up to?
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