LOC down payment on a convention loan

[Desteni Barnes]

Hi All,

I am new to investing and ready to start actively looking for properties. I have access to a LOC but I am wondering if I can use the LOC as a down payment on a conventional loan or not. I am trying to avoid a HML because of the double fees involved with initial closing and then refinancing closing costs. My credit is good and I have a stable income, but my savings funds are limited.

Thanks in advance,

desteni

[Jaysen Medhurst]

@Desteni Barnes, sure you can use a LOC as your down payment. A lot of investors do this. Just keep in mind that you want that to be short-term debt. You should have a plan to quickly pay it off thorough a refi (BRRRR strategy) or being able to make substantial additional payments.