HELOC Question
I recently bought a rehab for 20k put 7k into it and the appraisal came in around 50k. I want to take out a heloc on the prop in the amount of33k. am
i going to run into seasoning problems?
Thanks
Yes, seasoning will be an issue. You may want to check with a local bank that you have a relationship with. They can portfolio a loan and have more flexibility.
Seasoning, I am not sure about but I would be more concerned about the LTV being that this is an investment property!
ok thanks all I appreciate the advice
What are your plans for the HELOC $$ - deductibility for tax purposes could be an issue depending on how the funds are used.
If you are in california it should not be a problem. Depends on the appreciate value. If it is high no problem. Give it a try if it does not work go some where else.
Basicallymy plan is this. I am refing out of the home to recoup my aquisition costs and my reha costs plus drawing out 5K for myself. I plan to do this over with about 18 homes. I will then ladder my rental payments to start paying off the proerties. My estimates including 5-10% vacancy loss is that I can have all lf them paid off in 6 years or so. That leaves me with just over 1 million in free and clear property (56K average sales price) and also with about 10.5 per month in psoitive cashflwo after taking out for taxes insurance but not including vacancy loss or maintenance
There are no seasoning requirements on HELOCS.
Laurie
[addsig]
not all banks have a seasoning requirements. Some have a 6 months requirement, others 1 year and some others no seasoning. talk to a mortgage broker...