HELOC's on investment properties in trust


I’ve been working with some big national banks to put a HELOC on a free-and-clear rental that’s held in a FL land trust. I’m looking for anyone who can recommend a knowledgeable bank with good underwriting who can do these low/no-cost HELOC loans on investment property–espeically property titled in a land trust.

Several banks have told me they do it, and I’ve processed applications with two, only to be dissapointed that they have problems down the road with the underwriting. The banker tells you, “no problem, we do trusts all the time.” However, the underwriter says, “I have a problem with this and with that.”

What should have been closed in a few days has drug on for weeks because the underwriters are ignorant and just don’t understand trusts. Rather than get educated and talk to my expert legal eagles, they just say loan declined, or require me to put my name on the title–thereby destroying one of the benefits of the land trust–privacy.

So can someone recommend a bank who knows land trusts and can get these loans done? I have outstanding credit, a beautiful balance sheet and a free-and-clear property.

[Can you believe some twit underwriter woulddn’t lend on a 1st position HELOC on free and clear property? Geez!]


I have noticed fifth third bank has some good investment packages. There website is www.53.com i think…

I am using them now to get HELOC at 100%LTV on some preconstruction homes just completed. They only require 6month seasoning and do 100% on NOO…so i say give them a shot. plus I am also in Florida… In fact i plan on going to back today to speak to them about some loans, I will ask my broker there for you.

Thanks for the input.

In fact, I am working with 5/3 bank down here, albeit with mixed success. They can work with the land trust, but the underwriter didn’t like my attorney’s trust management company (an LLC), as the trustee of the trust. They wanted me to see my name somewhere on the deed and title, even if I were the trustee. I also think they took issue with the fact that originally, my LLC was the beneificary of the trust, making it a business loan in the underwriter’s eye-- whole different set of underwriting rules, interest rates and fees.

Now, I don’t know what product you’re talking about up to 100% LTV. I’d really like to hear about that. It sounds like a different program that then one I’ve applied for, which is a consumer level product, up to 80% LTV on investment property. They told me seasoning is not an issue and I can borrow on up the the value of a new appraisal. If you’re talking NOO, it must be a commercial product, yes?

Anyway, I’ll trudge on with 5/3 and hope that other banks will open up their underwriting guidelines to allow financing in the the trust.


5/3 is doing HELOC to 100% of the appraisal on NOO properties now. It is only a couple months old the program. I plan to use them for some preconstruction deals to carry negative flow… They require 6months seasoning…