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Updated about 7 years ago, 10/01/2017

User Stats

77
Posts
65
Votes
Christian Allen
  • Investor
  • Providence, RI
65
Votes |
77
Posts

Pay off HEL before converting to rental

Christian Allen
  • Investor
  • Providence, RI
Posted

I'm currently house hacking with plans to house hack again in the future but want to leverage the equity I currently have. If I take out a Home Equity Loan against my current primary to buy another investment property, do I have to pay off the balance before turning my current primary into a rental? Do they typically work like an FHA loan where there is a minimum 1 year occupancy requirement?

I plan on living in my current property for at least another year but don't want to be stuck if in the future I do decide to house hack again.  

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