Using a HELOC to househack

[Chad Davis]

My wife and I are looking to get a duplex or up to a fourplex in Utah county, Davis county, or Weber county. We are going to use a HELOC to buy a place, we are doing a FHA loan so we are only putting 3.5% down. We are then going to rent out the upstairs of our current residence (we already rent the basement out) and then move into the new property. Is this a good idea as long as we cash flow? Or are there any inherent risks to this strategy? Any advice would be appreciated! Thanks!

Chad

[Chad Davis]

@Kristi Harmon I’m doing an FHA loan just through a traditional lender I think the company is called integrity lending. @Ernesto Hernandez Mountain America credit union does 10% and 15% down for investment properties. Your debt to income ratio can’t be over 43% and I think they are charging 2 points now. I’m not exactly sure what there interest rates are at the moment. That’s just off the top of my head. I looked into doin one of those loans before.