Starting Out
Market News & Data
General Info
Real Estate Strategies
![](http://bpimg.biggerpockets.com/assets/forums/sponsors/hospitable-deef083b895516ce26951b0ca48cf8f170861d742d4a4cb6cf5d19396b5eaac6.png)
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
![](http://bpimg.biggerpockets.com/assets/forums/sponsors/equity_trust-2bcce80d03411a9e99a3cbcf4201c034562e18a3fc6eecd3fd22ecd5350c3aa5.avif)
![](http://bpimg.biggerpockets.com/assets/forums/sponsors/equity_1031_exchange-96bbcda3f8ad2d724c0ac759709c7e295979badd52e428240d6eaad5c8eff385.avif)
Real Estate Classifieds
Reviews & Feedback
Updated 5 months ago on . Most recent reply
![Matthew Trevino's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/701378/1621495718-avatar-matthewt73.jpg?twic=v1/output=image/cover=128x128&v=2)
HELOC vs HELoan. Anyone have tips for using equity on a primary?
Hi there
I have primary residence that I would like to access its equity to begin my first RE investment. I have came across HELOCs and HELoans but not sure which would benefit me best?
I am leaning towards the BRRRR method or traditional LR once the right property comes across.
I have researched both but still not sure which of those 2 would benefit me best or if it even matters.
Just would like tips on this topic if anyone has any?
Thanks
Most Popular Reply
![Kerry Baird's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/75003/1701884926-avatar-locutus9.jpg?twic=v1/output=image/crop=2181x2181@0x0/cover=128x128&v=2)
HELOC is best for short term money, because the interest rates are adjustable, while the second mortgage is a fixed rate for a period of time. I like them for an emergency fund, if I have over-runs with a renovation. I prefer this to using one for a down payment. Impossible to tell which would benefit you most.
I have found that lenders value the house in different ways; one is a full appraisal and the other is an automatic valuation…my credit union did a "drive by" valuation. Figure offers a quick HELOC, which we thought we'd get…but our DTI (debt to income) was too high. We also used PenFed for a HELOC, and that went well.
Tips: pull your own FICO score and call the local community banks and credit unions near you and ask what rates and terms they offer with a FICO like yours. Make a table and compare, as interest rates and years of fixed vs variable rates will be all over the place. Navy Federal has the longest draw and pay back period I have seen, whereas my local credit union has a very short draw/repayment period.
Figure out what works best for your own situation.