sleepy5136
Well-known member
Anyone recommend any bank for HELOCs? Big banks aren't doing it now besides BofA.
HELOC Options
- Thread starter sleepy5136
- Start date
NEW -> Contingent Buyer Assistance Program
Bank of the West
PenFed CU
Wescom CU
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.
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).
What if you have the HELOC but dont use it? Does it take same amount of time and hassle to refi?
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).
usctrojancpa
Well-known member
sleepy5136 said:
Bank of the West
PenFed CU
Wescom CU
sleepy5136
Well-known member
Thank you!USCTrojanCPA said:
Cornflakes
Active member
Took out HELOC from Wescom recently. Super easy process and they are by far the most technologically advanced CU I have experienced.
usctrojancpa
Well-known member
Cornflakes said:
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.
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.
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.
usctrojancpa
Well-known member
Cares said:
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).
the.irvine
Active member
Cares said:
What if you have the HELOC but dont use it? Does it take same amount of time and hassle to refi?
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.
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.
usctrojancpa
Well-known member
ndmaynard said:
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).