HELOC

[Nelson Ching]

Hello, 

I'm new to this and this might be a dumb question, but I've read a lot of people using HELOC for a 20% on a 2nd home. My question is if you use HELOC for 20% down payment, how do you pay for the rest of the home. You go to the bank for another loan? How does this work?

Thanks in advance

[Aaron Howell]

2nd Home being a rental property ? If so, your tenants would pay for the rest of the home with their rent checks. You'd have a mortgage on the 2nd home and cashflow (from the tenants hopefully) and pay back the HELOC (on your 1st home) with the cashflow or surplus income that you have from your regular job.