Use a line of credit from a vacation home to buy a primary residence?

[Calvin Matthews]

Hello. My wife and I own a vacation home in Texas and are renting in our primary residence. We'd like to move out of this primary residence and initially were looking for a new place to rent, but then I remembered about line of credit and then had the idea to inquire about this for our vacation home. We've never applied for a line of credit but I'm wondering if it's feasible to do, especially for a place that we want to reside in rather than a place that we want to rent out. I tried searching in the forums for a similar post but came up empty handed so I welcome facts and opinions from everyone. Thanks in advance.

[Doug Smith]

I am not licensed for consumer lending in TX, so I don't have a dog in the hunt with this opinion. The rates for a purchase money loan (one where you take the loan out to directly acquire the property) vs when you do a "cash out refinance", which your loan would be if you chose to pay off the line with a loan on the primary residence, it typically done at a higher rate. A purchase money loan on a primary is likely to be significantly less than the rate you would pay on a line of credit on an investment property. Of course, if you have a great lender that you work with, they can work out side by side numbers for you to give you the info you need to make an informed decision. I wish you luck in your purchase!