Heloc or Credit line whats the Difference when you have a multifamily

[Angel Dejesus]

Hearing people say I have a credit line to pull money out incase i need it for a deal. Speaking to a banker just left me confused as she was tap dancing around the Question when i asked her to clarify. Am i looking to get a HELOC or a Credit line what's the difference or is it the same.

Banker wanted to see what it was for. Is it for rehab finally i said yes because i wanted to have it incase I needed it. But it sounds like thats not what they wanted to hear. 

Any Bankers can you elaborate. HELOC or CREDIT line against your home. What's the Difference.

Graciaz

Angel

[Jackson Ebersole]

Hi Angel,
A Home Equity Line of Credit (HELOC) is a specific type of credit line that uses your home as collateral. When people refer to a "credit line against your home," they are typically talking about a HELOC. A general credit line, on the other hand, could be secured by other assets or unsecured, and doesn't necessarily involve your home equity.

HELOC Characteristics:

• - Uses your home as collateral
• - Usually has a lower interest rate than unsecured credit lines
• - Typically has a variable interest rate
• - Allows you to borrow up to a certain limit, repay, and borrow again during the draw period
• - Can be used for various purposes, including home improvements, debt consolidation, or as an emergency fund

While it's possible to use a HELOC for RE investing or rehab projects, some lenders may be hesitant about this use. They might prefer to see the funds used for improvements on the property securing the HELOC. If you're specifically looking for funding for real estate investments or rehabs, you might want to consider investment property lines of credit, business lines of credit or private lending.

Let me know if this makes sense or you have any further questions. If you wanted to get some more information on getting funding from a private lender feel free to contact me.

Regards,

Jackson