Second Loans for Rental Property

Rental Property Line of Credit

Leading Source for Rental Property Second Loans

  • Take out equity from your rental property
  • Competitive interest rates
  • NEW Product -  Quick Close in 5 Days!
  • Decision and terms within 1-2 days
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home equity investors

Line of Credit Highlights

Investor eligibility

Loan amount & terms

Acceptable Properties

 

Example of a line of credit or second loan scenario


• Refinance a detached home: $150,000
• Current value: $650,000
• Existing 1st loan: $300,000
• ARV (After Repair Value): $825,000

Step 1: Get Line of Credit/Fixed Second Loan:
• $400,000 pays off 1st loan of $300K + repair funds
• $100,000 to renovate
Total Loan Amount: $450,000

Step 2: DSCR 30 Year Fixed Loan:
• New Value (ARV): $825,000
• Cash out refinance (70% of value): $577,500

‐ You now have paid off the line of credit or 2nd loan and you have cash back

fix and flip

LOC & Second Loan Questions

Is there a prepayment penalty? + There's not any prepayment penalty onthe line of credit products. On the fixed second loan, there is a prepayment penalty for six months.
How soon can I get the funds? + There are two line of credit products. One may be done within 5 days. The other with a better rate in 30-40 days. Hard money funds can be received by the investor in 3 to 7 days once documents are back from title.
Can I get a line of credit on my rental property? + Yes. There's two choices; the 5 day quick close and the standard line of credit.
What type of fees and interest rates should I expect?+ Fees will typically include origination points, underwriting, and appraisal. There's no appraisal or underwriting fee on the 5-day quick close HELOC. Interest rates range from 7.75-15%.