Using a HELOC for the first time

[Bradley Rieger]

In the fall of 2020 I did my first deal using the House hack strategy. I bought the place with my friend and have lived here for a year. We did a lot of renovations and with the price increase in the market we should have a good amount of equity in the property.

We are going to take a heloc on the property. does the bank have to look at both owners financials to pull the loan? We each want to use the money to purchase our own houses. Are you allowed to use the money on a house if you're not the one who pulled the loan?

Thanks!   

[Joe Dwonch]

Re HELOC: Each state is probably different-but in our state (WA and our situation), the bank wanted 90 days proof of income, saytisfatory credit scores, and DTI. The HELOC is secured against the home itself and the bank wants to know it's a sound investment and secure, and they're gonna get paid.