Heloc or cash out refinance???

[Chad Jackson]

I'm looking to purchase my second property in the next (2-6)months. I have about (100K) in equity in my current home, and I was looking to use this for my down payment. I was going to use a HELOC, because I did not want to lose my current interest rate (2.6%). I have talked to a few lenders and none of them do HELOCS. I have got a quote for a refinance with a conventional loan at (3.6%) locked for (5years) then adjusts. My current loan is FHA so I figured, I would go to conventional and get rid of the PMI.

My question is, is it possible to use a FHA loan for a vacation home loan/non-primary residence. I would like to use a FHA loan, so I could get the lower down payment.

Any advice/tips is greatly appreciated.

          ,Thanks!!!!        

[Nathan Grabau]

Low down payment FHA loans cannot be used for anything but a primary residence. How does the 1% interest rate increase compare to removing PMI? Quorum Credit Union currently has a 90% LTV Heloc that offers an interest only prime plus .99%. Currently that makes the rate 4.49%.(10 year interest only then 20 year amortization) It also allows you to pull up to 90% of your property value vs 80% on a cash out refi and has much lower closing costs than a refi. If you send me a DM I can share with you the application link. Before you apply it is pretty hard to get a hold of anyone that knows anything, but after you apply you get assigned a real person who has been very responsive to me. I am closing on my second HELOC with them on Saturday so I can personally vouch for them.