Who gives high LTV (Loan-to-value) Home Equity loans?

Asked by Anonymous123, Oceanside, NY Sun Nov 29, 2009

I just bought a $900,000 house and put 20% down. I would now like to do construction for about $150,000 and take out a Home Equity loan or line of credit for that amount. I know it's hard to find anything higher than 80% LTV but do you have any suggestions which bank I should talk to?

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Robin Silver…, Mortgage Broker Or Lender, Garden City, NY
Mon Nov 30, 2009
Keane and Bill,
Anonymous is from the NY metropolitan area, which is considered to be a declining market. The credit unions that lend in our area will not go up to 95%. In addition, US Bank will only go up to 85 as well. It might work to wait an amount of time until the home can go off the appraised value because we are starting to see some rebounding on the North Shore.
1 vote
William Pola…, Mortgage Broker Or Lender, Suwanee, GA
Mon Nov 30, 2009
Credit Unions and small community banks will generally go up to 95% combined loan to value (CLTV). However, they may use the sales price instead of the appraised value if the property was purchased within the last 12 months. If you just bought your house, this will give you plenty of time to do some research in your area.
1 vote
Keane Ng, Mortgage Broker Or Lender, Renton, WA
Mon Nov 30, 2009
Good to know Robin. What is the limit for Key Bank?
0 votes
Keane Ng, Mortgage Broker Or Lender, Renton, WA
Mon Nov 30, 2009
Good answer Bill. Credit Unions are a great option for equity loans.

If you're a USAA member, they're also a good option.

Key Bank and US Bank are the two large lenders who've specialized in equity loans. When everyone went to 90-95% loan-to-value, US Bank offered 125% and Key Bank offered the lowest margins on HELOC (Home Equity Lines of Credit).

They are still the best in equity loans the last time I checked (for large banks that is.). US Bank offeres equity loans and lines of credit through brokers but the products are much more aggressive if you apply with US Bank directly. Key Bank does not offer wholesale lending.

Both usually only offer the higher pricing as a refinance, not on a purchase, so you're probably in good shape. I always keep relationships with bankers at both institutions so I have somebody I can send my clients to if this is a product they're looking for. It doesn't hurt to see if your local trusted mortgage loan officer has a contact.
0 votes
Robin Silver…, Mortgage Broker Or Lender, Garden City, NY
Mon Nov 30, 2009
Do you have any of your own money to put into the transaction? There may be someone still left who is willing to do a construction loan for you in the area, otherwise we have someone we work with who will give you a 5% second. The idea of doing an FHA cash-out is pointless to you because your original loan amount was $720,000 using your figures, and the maximum allowed on an FHA in our area is $729,750. Do you have any idea what the appraisal came in at on your house when you purchased it? I recently had an appraisal done on a house in Manhasset and earlier in the year there were fewer homes that closed, so fewer comps were available to use. Starting in July more started to close, so you could potentially get a higher appraisal now. Give me a call and we can talk about the details.\
Robin Silverberg
Private Mortgage Banker
516-972-1687
0 votes
Jack Wilson, , Florida
Mon Nov 30, 2009
Right NOW FHA will give you up to 85% cash out. No Min FICO but you must be on time with no 30 day late payments.
0 votes
Glennmack, , Manhasset, NY
Sun Nov 29, 2009
The banks now a days are not doing high loan to values. You can call Glenn Mack at 516-924-3043; he can get you the maximum of 85% CLTV. or $45,000 maximun on a home equity line.
0 votes
Deborah Cama…, Agent, Riverdale, NY
Sun Nov 29, 2009
Dear Anonymous123,

In order to accurately answer your question I need to know the purpose of the home equity loan you are seeking. You mentioned that you just purchased the property, how long ago was that? Please advise and I may be able to help you.
Best Regards,
Deborah Camacho
0 votes
Anna M Brocco, Agent, Williston Park, NY
Sun Nov 29, 2009
Why not contact a few mortgage brokers and seek their opinions--keep in mind they deal with many banks not just one.
0 votes
Maggie Keats, Agent, Port Washington, NY
Sun Nov 29, 2009
Email Ellen Staffieri of DE Capital. If anyone can help you, she can. EStaffieri@pemc.com
Good luck!
0 votes
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