I'm in the beginning stages of trying to make a primary home a rental when I have to move cross country this summer for work.
I have over $100K in equity but the house would need some minor updates to make it competitive in the local rental market (ie flooring, paint, newer appliances).
Since I have low interest, a Cash-Out refinance is not an option, and I don't want a HEL as I don't want to pull out a set amont of equity as I don't have any big purchases planned, and I don't need a debt payout.
So I was looking into HELOCs.
-I looked to AVEN CC and was pre-approved with a SP, but with a APR of 12% with no real access to cash, I'm not 100% sold on the product. IIRC there was $250 cash advance fee to take an amount from the CL and deposit it to banking account.
-Figure. Another Fintech, was offer somewhere in the 11% APR, but I wasn't fan of the small print. They require large minimum drawn, (i forget the details) but I didn't want a bill for cash that I wasn't using yet. Also you weren't to pull form paid backed funds, so not a HELOC.
- Citizens Bank Current approved for $90K with a EQ HP at 11.5% APR with a $50 AF. I didn't mean to apply but they pulled my credit when I unfroze my EQ for Chase (loan officer wanted a triple pull). They keep calling and emailing to close, but I don't like the high APR.
-US Bank. Was pre-approved for $90K with a TU HP at 9.5% APR, but was denied with they found out I had a loan modification on my mortgage in the past during the dark time. Sucks because they were awesome to deal with for the most part.
- Signature FCU. I joined because I read good things about this CU. Was pre-approved for $90K with EQ HP, the loan officer had ticked me a few times, and he keeps pressuring me to do stuff but everything is "time critical", however what info I get from him via email or over the phone didn't match the info in app well as the disclosure has a incorrect fee structure for a HELOC.
Also they are want wayyyyy to much data financial data (ie. All my assets with account info like IRA, HYSAs, MMAs), all my liabilities to include Child Support, which I listed. Upon providing the amount of CS, they wanted a copy of my divorce to make sure I was not also paying alimony and to confirm my CS monthly payment. I have never had any CU or bank ask me for any divorce documents. Also if was ordered to pay alimony I would have listed.it.
They i was emailed again to sign the disclosure even though it has wrong info.
I called the manger, and was told the disclosure would be fixed, .....it wasn't.
So Far, these are bunch of red flags, and I I'm not impressed with the whole HEzlzozc process.
What your do? Close with Citizens Bank, or try dealing with SFCU pickyness. At the end of the day, I would like to close ASAP to start repairs and I don't want any more HPs if I can help it.
Thx
What state?
If in Texas, check with Amplify FCU. That is where I got my HELOC at Prime+0% last year.
VA
I know you aren't looking for another HP, but have you considered Virginia Credit Union? I think their home products are quite competitive. Right now you can get a HELOC with 6.99% for a year followed by prime+something. The underwriting process was pretty smooth IME. Maybe worth a look for you if you are eligible for membership!
Due to timing with my upcoming relocation, I decided to Close with Citizens Banks mainly to due to timing (poor planing on my part) and I need to 'get the ball rolling' with these house repairs. Overall the their Closing Process was quick and easy as they sent a notary to a place and time of my chosing, in addtional with all the documents the day prior for my review.
I'll report back, when I I'll start using the account for the overall experience for ease for drawing funds, payment processing times, Citizens UI, etc