Has anyone done a Heloc recently? I would like to have access to some of my equity for investment purposes. It hopefully won't be long term, just to help with cashflow. So I think a Heloc would be the best bet.

What are current rates and does anyone have suggestions for someone to use? Thanks!

Assuming you are on Texas we're running a promotion at 6.74% for the first year. Several posters here have closed on it since it's been I'm place. My email is on my profile.

In reply to WestTXag18 Send me an note. I can refer you a lender currently doing them at 5.99% for the first year.

Those initial first year rates are tempting but what's the second year rate look like if it was today? How long are these promotional 1st year deals good for? I either need to do this or a construction loan in Colorado soon…but probably not for 4-5 months

Thanks! I'll reach out to y'all here in a little bit. Sounds like a good option right now.

In reply to MAS444

MAS444 said:

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Those initial first year rates are tempting but what's the second year rate look like if it was today? How long are these promotional 1st year deals good for? I either need to do this or a construction loan in Colorado soon…but probably not for 4-5 months

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Every bank will be different, but believe prime to prime +1ish are pretty standard.

I don't originate HELOCs as they are a retail bank product but I'm often asked about them so I have bank personnel that handle them. Questions to ask when discussing these.

1. What is the interest only and draw period?
2 At what point does it become amortizing?
3. What is the amortization period after the interest only period.
4. What is the index after the first year?
5. Is there an option after the first year to fix the rate?

In Texas a HELOC can only be signed at a bank branch so out of state banks with great promo rates may not have a location where the docs can be signed.

I was talking to a guy at a Texas bank that is a big player in the HELOC and second lien market and he told me they're at 9.50% right now which I think is pretty representative of the market.

In reply to jja79 Thanks guys - I mostly know the answer to the rate question...but keep asking hoping I'll hear a better answer.

Anyone do a HELOC on a second home (investment property)?

In reply to jja79 You do not have to close in a bank branch, you just cannot have a remote closing like at home, but you can close at a title company.

In reply to TdoubleH we have a product that is close to a line of credit you will find on non-owner occupied. It is out of our balance sheet. Would love to chat about it.

In reply to Jay@AgsReward.com One of the benefits of a HELOC is no closing costs unless an appraisal is required or requested. If it were to close at a title company/attorney the borrower incurs those costs. I wasn't clear but you are correct although that eliminates one of the benefits to the borrower.

In reply to TdoubleH I put a HELOC on my second home (CO) earlier this year. Bank was a Colorado bank that gave me line of credit and I closed at a network partner bank branch here in (TX).

What's up?

In reply to OldArmy97 Texas a unique equity law that other states don't. It's archaic.

In reply to jja79 a courtesy closing cost is like 150 bucks. The law just states that you close at a branch or attorney office (title company) not that you have to have title insurance. Much ado about nothing really because banks that do not have Texas branches rarely offer HELOC's in Texas due to those archaic rules.

In reply to Jay@AgsReward.com

Jay@AgsReward.com said:

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we have a product that is close to a line of credit you will find on non-owner occupied. It is out of our balance sheet. Would love to chat about it.

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I emailed your username. Not sure if that is correct or not.

In Texas, can you get a HELOC or second mortgage on a second home or are they only allowed on owner occupied homes?

In reply to TdoubleH I have responded to an email from this thread twice, but have not heard back from the emailer. maybe this was you? I do not want to think I am ignoring you, but maybe I went into spam?

In reply to FourAggies and there is no law against, it at al. Most lenders just simply do not do it. We do have a program, but I will tell you rates are high on it.

In reply to Jay@AgsReward.com Sorry. It did go to SPAM. Just saw it earlier today. I switched gears already on my research. If I settle going back to my secondary home's equity then I will give you a call.

I am interested in a Texas Helloc. What do the 2nd Year rates look like on some of these products you have mentioned on here?

What are the pros/cons of using a HELOC vs a bridge loan to access equity to help with down payment on a new home and/or doing pre-sale fixes on current home?

In reply to Jay@AgsReward.com I've never worked for an out of state bank but I have worked for Texas banks for many years. This is anecdotal from people I know that tried getting a HELOC with OOS banks and in both instances those banks wanted a title policy which is expensive obviously.

When i got into banking almost 45 years ago the equity lending debate was raging. The media and consumer groups would have the public believe banks would own every home in Texas.

In reply to rondis23 Right now probably 9% or even a little higher. I have some contacts at Frost and they're big players in the market and they're 9.5%.

In reply to jja79 When you are saying out of state I assume you mean banks that do not have branches in Texas? Because if so I am not even aware of any banks that do not have a presence in Texas doing HELOC's in Texas. And most banks do require a title policy if the loan is over a certain amount. That amount can be different but Amegy does as well.

Forgive my ignorance but need some education on HELOCs.

Can you use HELOC funds from a rental home to pay for upgrades on your current homestead?

Basically, I have a rental home that has no debt on it and didn't know how flexible the funds are on a HELOC and if you could use them outside the source of the asset it is tied to.

In reply to BigLeftMiss08 I think the bigger question is if you can get a HELOC on an investment property.

But the funds of a HELOC are not restricted at all. You can use it for repairs on that house, to pay for a new house, for medical bills, to go on a bender in Vegas.....

In reply to BigLeftMiss08 You can use the funds for anything however as htxag pointed out it will be very hard if not impossible to get a true line of credit on an investment property assuming the house is in Texas.

You can however do a cash out refinance on a investment property which would likely fit your needs better anyway as it is a fixed rate.

In reply to Jay@AgsReward.com Noted.

Is there a minimum amount when doing a cash out refinance?

In reply to Jay@AgsReward.com Jay, What's the reasoning behind not being able to get a HELOC on an investment property?

Also, say you live in a house, it's your primary residence, and you get a HELOC. 2 years late your move, but keep the house as an investment property and still have the HELOC open. Any issues?

In reply to Jay@AgsReward.com Within the last 2 weeks 2 posters who contacted me closed HELOCs with our retail bank at just under $500K without title policies. I think our limit is $500K+. I know those limits have increased most places the last couple of years. Not long ago $250K was the number everywhere I'm aware of.

In reply to BigLeftMiss08 Technically there is not a min but in practicality it would be at least 50k. That is due to federal rules on fees etc. Be happy to take a look to see if we can make something work for you.

In reply to htxag09 You know, I have been exploring that very question as we are considering offering out of our balance sheet if we can nail down all the particulars.

We have been talking to our attorneys trying to figure out why there ARE some limited options on non-owner lines of credit outside of Texas. It is still rare, but some programs are offered but they always exclude Texas. And not sure why, but I THINK it is simply due to Texas homestead laws which are different from the other 49 states.

So, more or less, it is just not worth the hassle and Texas legal expense to make sure they are doing it right for a program that would only have a tiny % of their business in Texas, so they just exclude Texas and lend in the other 49 states.

In reply to htxag09 I did not answer your second question. It would depend on terms of your loan and if there was any clause in there that required the loan to be paid in full when you changed occupancy. I have never seen that but I guess it is possible.

More likely if you open a HELOC while it is your primary home and you satisfy your primary residence affidavit you will sign at closing that will likely state you will live in the home for at least a year, then you are ok keeping the line open after moving out.