HELOC in Texas for Investment Property

[Dan Warner]

Can anyone tell me if you can use a HELOC to purchase an investment property in Texas?

[Michael S.]

I believe they are allowed. The restrictions Texas has on cash-out refinances and HELOCs are for primary residences. Presumably because of the restrictions, it seems many institutions do not have that kind of product available in Texas. From my understanding you have to talk to the right commercial lender in order to get a line of credit secured by a cash-flow property. That said, from my experience I haven't seen any willing to take a 2nd position.

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