Home Equity To Buy
Can I use a home equity line to put $ down on a new home? Or do I have to use a bridge loan? What is the wisest way to go
Can I use a home equity line to put $ down on a new purchase? I want to keep the first home as an investment and move into the new home. I also need some cash to pay off outstanding debts. Do lenders penalize you for having another morgage?
[ Edited by JohnLocke on Date 05/21/2004 ]
You can absolutely use your equity line of credit (HELOC) to purchase whatever you want, including putting a down payment on another property...
Caution: Try not to over extend your line, keep a comfortable amount of equity in all your properties just to be safe!
Good Luck!
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You can access you equity. A Home Equity Line of Credit (HELOC) is one way.
Your credit score reflects all your accounts and how well you manage them plus other factors related to income, stability of the above, etc.
So, doing almost anything in this area will change your score. It might cause it to rise as you might be seen as less risky with lower credit card balances. Not exactly true but you can get the picture.
I have a concern that you are a bit new to all of this (real estate investing and the use of credit).
A strong suggestion is to read more. Read things here but more importantly go to a library or bookstore and start reading. It is 'what you do not know you do not know' that will really penalize you.
John
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