My scores are 682-697-721. I am approximately 40% debt ratio. I have a rental property with $30k equity and $50K equity in my own home. Looking to get a line of credit from the two properties to buy another rental. Pay cash for the new one and then tap equity from there for next and so on.
I would not tap the equity of your other properties to make the purchase. All you would accomplish is higher closing costs. It seems to me that you can purchase the new property with a new mortgage, no problem. Some lenders may not want to give you 100% LTV. If that is the case you can find a lender that will give you 100% CLTV if you are willing to give an accommodating lien on your other properties.
I am assuming that the equity %'s that you are quoting are 100% LTV. You will probably not be able to max out those LTV’s.
You may look at obtaining a LOC on your primary so that you have an available cash line for DP’s, minor repairs, etc.
Depending on the parameters of your new loans…you are already at 40%…you have some to continue to go full doc.
However, if you should reach the point where you need to go stated (which your credit scores will allow) you will not be able to get as high of a LTV in most cases. Especially on LOC’s.
Not to mention that you can only use 75% of the income from your rental properties for loan purposes. So depending on your DTI (debt to income) you may be forced into a stated position a bit earlier.
If you go subprime you can use 90% ;D
On you owner occupied house you should be able to get a HELOC no problem to 100%. The investment property on the other hand…you will most likely not be able to go to high. I would just put 20% down and mortgage the new investment property or if you can get a good rate on a heloc…take out 50k and put that down and mortgage the rest. Your rate on a heloc will be pretty comparable to an investment property at 80%. You can get a conforming heloc in the 6s with that credit score and dti as long as the employment situation is ok.