HELOC Questions

[Robert R]

I need advice to see if I can get a HELOC on a 12unit apts. 3 bldgs w/4apts each.  My fico was 723 in Jan and now at 660 due to using credit to do rehab on rear apt. bldg and another sfr. The rear bldg needs to be finished another $15K to finish.  Future value of rear bldg. is another $1800-$2000K per month
Need HELOC, does it exist for a commercial apts.
$140K    financed
$230K    as is appraisal Jan 06
$350K    future value
Thanks in advance for any help or guidance.
Also have a prepay on the loan that is why I am looking for a HELOC.
Also need to go stated.

[turborocket]

Are these buildings on one tax parcel or 3 separate parcels?  It will make a difference as to whether you can get residential or commerical LOC products.  

Your post is a bit hard to follow but I think I understand.  Should be do-able if you need residential.  If it is commercial, I have no idea other than "stated" would be much tougher.

[zachj]

I saw this post somewhere else, I assume you have not found you're second which you probably will not at least as far as commercial.  If you're doing this as a 12 unit commercial you will have to deal with paying off the 1st with the prepay hit and letting the new lender go in 1st position.  You should not have a problem with a private lender doing a short term loan by paying of the 1st and then covering 100% of the rehab costs.  I know lenders that will do this no problem.  Then you can refi back into a normal loan.

Either that or better yet if the "debt service ratio" is low enough you may just want to again take the prepay hit and cashout refi into a new long term loan at 75%ltv or so and use the cashout for you're rehab.

This is assuming you're loan is not locked out and that you are allowed to pay it off and take a prepay hit.