stated income heloc for rental house

I have a brand new single family home done on may 2005 . It is appraised for $860K and I only own about $477K on it. I am looking to get the most cash out of it as possible. I do not want to refi because I have a very good rate on my current mtg and the closing cost is too expensive. I think a heloc will be my best option. Is it possible to do a heloc on rental home with no income verify ? I am working currently but I have too much debt. My credit score is between 620 to 720. Could any one help point me to the right direction or refer any good mtg company that will be able to get it done. If you are a mtg broker , please tell me if you can do it and what is the rate, fee…

correction, my credit score should be 680 to 720

What state are you in?


I hear that Citi and Chase has a good program for HELOCs. There are also companies out there that close HELOCs with no closing costs.


There a quite a few lenders that will allow High LTV helocs on an investment property going stated with those scores… You should contact a mortgage professional :wink:

Jason is right, with your credit scores and ltv you won’t have any problem getting a decent rate on a stated heloc. Contact a mortgage broker…what state are you in by the way?..

my house is in FL, Sarasota. I try to contact few mortgage broker but they are seem not interested to do heloc. They either ask me to refi or did not call me back.

It doesn’t surprise me that you’re getting the cold shoulder from the brokers you’ve spoken to. HELOC’s pay very little and most brokers only want to deal with the big money. These brokers lose a lot of great potential repeat clients with this mindset however.


How long do you plan on keeping the heloc? The reason I ask is that with the Fed still raising prime, it may be better off just getting a fixed rate 2nd mortgage.

You should be able to get up to 80%-90% of the appraised value.

i.e. $860K x 90% = $774K - $447K (1st) = aprox $327K

However some lenders may cap the total loan amount to around $150K - $200K.

This is a simple transaction.

Have you approached the bank you have your accounts with?

I would skip using a broker and just start contacting local banks yourself…this comming from a broker.

It’s going to cost you less if you deal with the bank directly.

My $0.02

I went to my local bank and they just can’t do it. It is kind of hard when I have 1,2 mil in mortgage debt. And they don’t do stated income on heloc and most of them don’t even touch a rental house.

You’re right, most local banks wouldnt touch that.

You may need a “no ratio” loan.

I dont believe a heloc will be an option. This will most likely need to be a fixed 2nd mortgage.

Contact a broker that specializes in investment loans.

I wanted to add 1 very important factor to doing a Heloc: 0x30(Character)
Metro area,