Heloc For Profit
Does this seem to make sense,
Refi my current mortgage with a 10 year interest only HELOC at .75% over prime. Now i have access to 60k to invest in properties. But i would like to buy another property under my wifes name and claim homestead on the property. So now I could have the benefit of two homes as primary properties. I know your not suppose to have that but what if we weren't married ? Anyways, Rent my house out for positive cash flow and try to pay off mortgage within 10 years. Is it to agressive? 
I don't mean to change the subject but what is HELOC?
Home Equity Line Of Credit
Usually at prime rate which is now at 4% .
I dont think you will have a problem as long as you state its your prrimary residence. underwriters might ask for utility bill showing your name . and address on the bill to prove primary .
jc,
Your plan sounds brilliant! While you are in jail for defrauding the government, you can rent out both homes. By the time they release you, they should be paid off and you will be in cash flow heaven! Best of luck to you.
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I think you answered your own question...I know your not suppose to have that but what if we weren't married ? How could you not be married to your wife? You can only claim homestead on one property, plain and simple. You could get an OO loan and move into the new residence without altering your existing financing, however, I'm sure the HELOC has a period of expected residency as well, since different interest rates are offered for NOO and OO properties. In fact, I don't think I've seen a HELOC for a NOO property before....
-Chris
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Live long and be profitable!
[ Edited by c-brainard on Date 02/22/2004 ][ Edited by c-brainard on Date 02/22/2004 ]
i can see where you are coming from c-brainard.But what i mean is if i wasn"t married she would be able to buy the property with a OO loan using as little money to get into the place.. The lender or government wouldn" t know the difference as long as mortgage is ****Must Reach Freshman Investor status before posting URL's*** time.
At that point we can rent out the property for a year and then refi. into another HELOC. Thus creating 2 homes that can become huge credit lines for buying and selling homes for investment.. There are more details involved with my idea.
By the way there is a Lender who offers HELOC on investment( NOO) properties. Providing you have good credit , like 700 and up scores . thanks for the comment. Before i go I"m not trying to defraud anybody or get myself in trouble I will take your advice. thanks
I can't speak for the country as a whole, but TX is very specific when you sign the homstead exemption. It asks if it will be your primary residence and also if anyone else has invested interest in the property. Just be careful, I don't mind defrauding a lot of people, but I always pay 100% of what i owe in taxes, sometimes even avoiding deductions i could probably take. It simply isn't worth the trouble.
Now, if you wife wants to purchase the house and live in it, OO w/homestead isn't a problem. However, whichever house you rent out will lose homestead exemption. I'm not overly worried about the lender finding out you don't live in the home. It is unlikely and the worst case scenario (probably) is they call the note due. Please don't take the above as legal advice, make sure you fully understand the consequences of breaking your mortgage contract.
-Chris
p.s. Who offers a HELOC on a NOO property? I'd be interested in contacting the lender. <IMG SRC="images/forum/smilies/icon_smile.gif">
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Live long and be profitable![ Edited by c-brainard on Date 02/22/2004 ]
thanks, c-brainard for the heads up on the mortgage contract . And look up ( NOT for advertisement) National City Home Equity it's National City Mortgages' equity line division they have good programs. c-ya
Yep, that's who I used to do the same thing, Heloc on a NOO..
Quote:
On 2004-02-24 18:57, jcmoney wrote:
thanks, c-brainard for the heads up on the mortgage contract . And look up ( NOT for advertisement) National City Home Equity it's National City Mortgages' equity line division they have good programs. c-ya
Ack....I used to bank with National City, I can't stand them No wonder I haven't located one....hehe
-Chris
[addsig]
I don't see what hte big deal i s with the "homestead exemption" In Oregon it isn't that big. Secondly it usually only comes into play if your not paying your bills and going to lose your home. Additionally state homestead laws do nothing for IRS liens.