Aug 26 • Small Multifamily Masters
Helocs for investors
Here’s the detailed breakdown of the top HELOC options for investors, now including Loan‑to‑Value (LTV or CLTV), average interest rates, and draw periods wherever available:
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1. Quorum Federal Credit Union – Investment HELOC
LTV / CLTV: Up to 95% combined LTV for second‑lien HELOCs in select states. First‑lien HELOCs offer up to 90% max LTV.
Interest Rates: Variable rate based on Prime index plus margin. Floor APR around 4.95%, ceiling at 18%. Rate discounts available (e.g., checking account or CD balances) .
Draw Period: No specific required draw at closing, and typical HELOC structure—likely a standard 10‑year draw followed by repayment—but exact draw duration isn’t stated.
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2. PNC Bank – Choice HELOC (Investor Option)
LTV / CLTV: Not explicitly stated in sources; likely conventional ~80‑90%, with variations based on credit and property.
Interest Rates: APR ranges from approximately 8.68% to 16.35%, variable or fixed. Discounts include 0.25% for autopay or early months.
Draw Period: 10 years.
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3. PenFed Credit Union
(Specific LTV, rates, draw period data for investors not found in sources; falls back on prior ranking)
LTV / CLTV: Not available in reviewed sources.
Interest Rates: Rates generally start around 7.625% but may vary.
Draw Period: Not specified in available sources.
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4. Connexus Credit Union
(Again, details limited in sources)
LTV / CLTV: Not listed.
Interest Rates: Not specified.
Draw Period: Not specified.
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5. National Banks (Wells Fargo, BofA, U.S. Bank, etc.)
(General category—individual specifics vary by bank)
LTV / CLTV: Typically limited to standard 80–90%; stricter for investment properties.
Interest Rates: Not specified here; usually higher for non-owner-occupied properties.
Draw Period: Generally around 10 years, but depends on each bank.
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Summary Table
Lender / Option LTV / CLTV Interest Rate (APR) Draw Period
Quorum FCU – Investment HELOC Up to 95% (2nd lien); 90% (1st lien) Floor ~4.95%, ceiling 18%, Prime-based Standard (~10 yr; not explicitly stated)
PNC Choice HELOC Not specified (~80–90%) ~8.7% – 16.35% (variable/fixed) 10 years
PenFed CU Not listed ~7.625% (approximate) Not listed
Connexus CU Not listed Not listed Not listed
National Banks (Wells, BofA, etc.) ~80–90% Higher than primary homes ~10 years typical
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Notes & Recommendations
Quorum offers the highest LTV (up to 95%) and transparent variable rate structure. The draw period isn’t explicitly stated but is likely in line with industry norms (~10 years).
PNC provides flexible fixed-rate locks and large borrowing limits, with a clearly defined 10-year draw period and a wide APR range.
PenFed and Connexus remain solid choices, but you’ll need to request specifics (LTV, APR, draw period) when applying.
National banks may carry more rigid terms for investors, including lower LTVs and potentially higher rates, but offer convenience if you're already a customer.
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Would you like me to look up the exact HELOC terms for
Connexus or PenFed, or help you compare a specific lender’s current rate offers? Just let me know!
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Helocs for investors
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