HELOC or Cash-Out Refi?

[Miguel A. Martinez]

Hi, guys. Thank you for all your advice. I am looking to tap into my primary residence equity. It's a substantial amount. I will be using the equity to pay off all my personal debt and will have a good amount of cash left over for a down payment on an FHA loan to buy my first investment property to house-hack. Should I go with HELOC or cash-out refi? What loan companies do you recommend that can do this? Thank you!

[Trenton Engle]

Quote from @Miguel A. Martinez:

Hi, guys. Thank you for all your advice. I am looking to tap into my primary residence equity. It's a substantial amount. I will be using the equity to pay off all my personal debt and will have a good amount of cash left over for a down payment on an FHA loan to buy my first investment property to house-hack. Should I go with HELOC or cash-out refi? What loan companies do you recommend that can do this? Thank you!

Hey  Miguel,

So it’s a hard question to answer as both have pros and cons, and the products vary widely. 

Generally speaking people prefer HELOCs as some lenders, myself included, can tap into a larger amount of equity with them compared to a regular cash out. But again, not until you view all the numbers can you say for sure. 

I’ll message you to help determine what is right for you!