Trying to leverage all 100% LTV of my SFH with a credit line

[Justin Spencer]

Hey there,

I have a SFH right now with an 80% LTV.

I live in Mesa, AZ and I found one credit union (Credit Union West), that advertised HELOC's of up to 100% LTV.

However, today I called and spoke to a loan officer and due to covid-19 they reduced it to 90% LTV.

Which is still better than the average lender offer... but frustrating still the same because 100% would have given me a huge line of credit.

However, I'd still like to find a way to leverage that other 10% equity that's doing nothing which is about $50 to $60k.

I was thinking perhaps I could find an independent investor who may be interested.

But I need some perspective on who, where and how I'd make that kind of offer.

I would like to get a single digit interest rate from 4 to 9% range using the equity as collateral and to make interest only payments for as long as possible on the balance borrowed, same concept as a heloc.

Looking to use the capital to invest in another SFH. I do house hacking, so I live with roommates who pay for 100% of the mortgage + utilities on my current house and I'd like to get another one to do the same thing.

My credit is flawless in every shape of the word, and I'm 29 and have borrowed probably 500k+ over 11 years and have never had a missed/late payment or single dot in that regard and have paid off tons of things quicker than expected.

I am trying to understand the mindset of someone who would consider making me an offer based on my outcome defined above, who is not a credit union or bank, which I assume would never consider making me this kind of offer regardless of my high income and perfect credit.

Thanks and curious to hear your thoughts, Justin