Author Topic: Low fee HELOC for low value home  (Read 1230 times)

kendallf

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Low fee HELOC for low value home
« on: June 10, 2015, 12:15:19 PM »
I'm looking for a HELOC on our current house to serve as a back up funding source for renovation expenses on our old house as I get it ready for sale.  The current house has no mortgage and is a small home worth <$100k (probably 60-70k right now, actually).

I'm currently cash flowing the renovation expenses from our monthly income, backed up by zero interest credit cards, with those backed up by investment accounts (Roth IRA and HSA, in this case).  I'm trying to keep maxing our tax deferred retirement accounts (TSP and HSA) while I do this.. thus the float.  If I keep moving on the renovation work and the house sells when I'm done, I may never need the HELOC.  I just want it available if I need it, say if I break a leg and have to contract out the rest of the work, or it sits on the market for a year or something.  :-)

So.. I'm looking for a lender willing to lend on lower value properties, and one with the lowest fees possible.  I'll be looking for a low adjustable rate but the fees may be more significant than the rate for my intended usage.

Any recommendations?

regulator

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Re: Low fee HELOC for low value home
« Reply #1 on: June 10, 2015, 12:31:32 PM »
I have had good experience with Hanscom Federal Credit Union.  No fees, reasonable rates, and minimal hassles.

kendallf

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Re: Low fee HELOC for low value home
« Reply #2 on: June 10, 2015, 08:13:07 PM »
That looks like a good option, actually.  2.75 rate quoted on their website, which is better than anything Bankrate was coming up with, and better than my local credit union (Vystar, 4.00 rate).  They're the current front runner; thanks!

Any other ideas/sources for rates other than Bankrate?