Equity loan on existing investment property - Options?

[Dharmesh R.]

I have an existing investment property which is at 60% LTV.

I am planning to buy a PR in near future and need down payment money. Are there lenders out there who'd lend me equity loan on my rental? How do I go about it?

[Shaun Weekes]

@Dharmesh R.

I would get pre approved so that you know that you qualify for the loan.

You'll need to gather quite a bit of documentation but it's best to get these items up front.

W2 for past 2 years

1040's for past 2 years ( all schedules )

30 days worth of paystubs

2 months of bank statements

6 months of reserves ( this can be shown in many ways )

Valid ID like a DL or passport

Terms of withdrawal, if you're showing money in a 401k, stocks or bonds.

Current mortgage statement and home owners insurance policy (Just the first page of the home owners policy).

You're really going to need all these items except maybe the terms of withdrawal if you have enough cash in savings or checking accounts.

Before you actually pay for an appraisal I would gather data on current sales in the neighborhood of the home.  Just to insure that you're not way off on value.  You won't be spot on but you don't want to be off by more than 5%

Pm me of you have any additional questions or concerns.

I hope this helps and have a great day Sir.