Home Equity Loan

Financing, Hard Money Lenders, Private Money
1

I own a home in Wisconsin (rented out), but live in an apartment in NY. I wanted to buy a cheap house in upstate NY to flip. I thought I could access the 45k in home equity I have in the house I own, but was told I can’t, because it’s not enough. Is that true?

2

Well you are not giving me enough information on 45 k not being enough,

Because I don’t know what the cost of the house is in upstate NY you may not need the 45k at all

what is your fico score?

how are you documenting your income?

What LTV are you trying to achieve?

Does this home need any rehab work?

What is the purchase price of this home?

All this will help me know if 45K is enough or not?

3

Thanks for your help. I’m new to this, so I’m unsure of what info I need to provide.

  1. My fico score was 730 last I checked (that’s a credit score, right?).
  2. We’re looking for a house in that price range, but because we have an apartment in NY, a house in wisconsin (Which we rent out), I’m not sure we could qualify for a traditional loan. That’s why I thought a home equity loan might be best. But I admit, I could be totally wrong.
  3. I can document my income with all normal paperwork.
  4. We’re trying to buy the house outright. Some houses go for that amount of money there.
  5. Not sure if it will need to be rehabbed.
  6. 45k is about the price of the entire homes up there.
    THanks for your help and taking the time to look at this.
4

OK now I know what to do to help you

Well you have a couple of options,

I would suggest that you apply for a loan with a local bank or credit union that does HELOC in wisconsin AMOUNT DOES NOT MATTER. you will save big time with closing costs how do you like NOTHING for closing costs. ;D

( Now the LTV may be adjusted because this is a non owner occupied good thing is they usually have KICKING GOOD RATES that beat any loan broker. )

Now you can do this over the phone with them you can sign all the documents and mail them back so all this should not matter.

Second option you can go to a loan broker that deals with low loan amounts and have lenders/ investors that deal with that. Now you can get them they are just few and far between. You could get up to 100% LTV at a higher rates.

Because of the loan amount a broker will charge more just to make it worth their time so just so you know the difference.

Third you could go to a private investor or HML a Private investors are usually alot cheaper than a HML.You can negotiate terms and closing cost and they usually have much much higher rates then the first two mentioned options