I’m a New Investor. I have a lot of equity in my home and great credit. I’m looking at buying some property at around 45-50K. Some lenders won’t do loans for such low amounts, so I’m trying to determine if a HELOC would work.
What are the cons to purchasing a property with a HELOC? If I use the HELOC to purchase, can I refinance the property later to get a fixed rate and payment? If so, what’s the best way to do that?
Thanks in advance for any advice!
Some lenders will do this. Do you want 100%? Do you have enough equity in your primary home to take out a line for this amount?
I do have the equity to pull out a line for this. Don’t have to have 100% financing…I do have some cash for a down payment.
It is deffinatly cheeper to get a HELOC on your Primary residence the only issue is that if the deal goes south your residence is at risk.
50k is usually the loan limit for most lenders and anything around 25-50k is the limit for some lender is only 70k so it does make it a challage and you can still get loans though.
Refer to these posts