I have a $25k line of credit on my primary house. I would like to pay it off by using the equity in my investment house. I owe $179k on the investment home, its worth about $210k to $220k. My DTI ratio is over 50%. Would I have to take out a loan on the investment home?
Or is there some product to actually transfer the HELOC. The goal is to clear it off my primary, so I can sell. Thanks
That does not make a whole lot of sense. Why do you want to pay off the LOC on your primary if you are going to sell? Do you plan on selling for less than you owe?
Unfortunately, due to the market, the value of SFH have decreased over the past year. For example, in a decent market, my home would sell for at least $280k to $300k. Similar homes in the subdivsion are sell now for as little as $199k to $254k. None have sold yet. I owe $225 on the 1st. So with the HELOC added on, its very unlikely I could sell for what I need.
That is a tough call. With the market changes lately it is going to be tough to get additional financing with a DTI above 50%. If the HELOC on the investment was also used to consolidate some debt and bring your ratio under 50% I would go that route.
Do you have to move now? The market is getting close to the bottom at this point in many areas. Have you had an appraisal done?
You have options.
Your best option is going to be finding a reputable mortgage broker/consultant in your area that review all the variables and advise you on the best course of action vs. a broker that is going to put you into a loan just to make some commish.
Dont have to sell right now, can wait 6 months or so.Looking to make another purchase on a new primary befor the prices skyrocket. And I have no problems having some debt paid off before that. I have not had it appraised, from what the 3 or 4 realtors have told me, my sq.footage is selling for about $83 per foot, the house is 2838 square feet.
The Casa Grande, Az area is great and booming with new builds. My subdivision has been historically slow to gain value ands it only 6 years old.
Nice advice, I think Ive been talking to a lender thats just looking for a commission.
How about turning your primary into a rental? Will it cash flow or come close so that you don’t have to sell at the bottom of the market?
Rental market is soft at the moment. Even so, would still have to throw in a few hundred monthly.
Few hundred to cover PITI over the rent or few hundred including ALL other rental expenses?
Good question, it would only cover mortgage…
So you would be upside down far more including other expenses. Ouch.
yeah AZ is the WORST for cash flow rental…everyone has been betting on appreciation.
new guy, hit me up via PM and i will lead you to a great loan guy. one who isnt just digging for a commision.
Casa Grande is a rough area to have property 
marc