What Are My Alternatives To A Heloc?
I recently purchased a foreclosure home for $105000.00 cash. Total assessment on this property is 98000.00, with comps in the area from 132000 to 154000.
It will become my primary residence once I have sold my current residence. I was thinking about doing a heloc on my new residence so I have access to cash for other foreclosure opportunites. I have a meeting with a mortgage broker this week, but I was wondering if anybody could give me any other better alternatives to a heloc.
In May I sold my business that I had for about 3 years, and am currently unemployed. My credit score is 706. Any feedback would be appreciated.
I'm not sure what you are getting at but the only other alternative is a fixed loan. It sounds as though you'll want something revolving so a line of credit is my recomendation.
The unemployment situation MAY be a problem depending on how strong your financial statement is and how your relationship is with your banker.
Your credit is good but would be helpful to have it higher.
Thanks for the info. I'm trying to get a line of credit so that if i come across a good deal i have access to cash.
You mentioned that a higher credit scorec would help. I know the higher you credit score the better, but what about all N o Doc programs that are availabe?
Thanks again for your feedback
No Doc programs require great credit and have lower LTV's.
:-? It sounds like a heloc may not be an option for me? Does anybody have alternative suggestions? Or refer me to a broker that can help.
MJ,
It is expensive, but depending on what you are doing with the property, it may be the most appropriate. Normally when I buy a property, I buy one that needs repairs. During the rehab period, I use a hard money lender. Then I either sell or refi. You won't have a "line of credit" with a hard money lender, but you will have someone who can fund a deal quickly. If you need help finding one, you can go to your local REIA.
How long do you need the money? Wells Fargo offers hibrid of HELOC and second mortgage called "SmartFit". The interest rate is between HELOC and second mortgage. No closing cost. You can lock the interest rate for 3,5 or 7 yrs. Unlike HELOC, you have to take the loan in full. You can pay interest only until it matures. I believe you have to keep the loan minimum 3 yrs to avoid fees. This option is not good if you need the money only for brief period of time.
ew86,
The loan is a good product but the poster is unemployed so I don't think that they will be able to get that loan.
Mj,
I had an assumptive thought. Perhaps you could try and contact the lender whom currently holds the deed to your current residence. You do after all have a great score and further more, a healthy relationship with them.
p.s. Assuming "them" even exist.