Financing My First Investment Property

[Matthew Ray]

Hey all,

I bought my first home (currently my primary) last year and am now looking to purchase a Long term rental property. I have about 70k of equity in my home that I want to leverage to finance this investment property. I've been searching for HELOC lenders and have been hitting roadblocks with the low LTV's (70-80%) of property value. Anyone have any better options to access the equity in my home? or are there better ways to finance? I'll post my primary property details below.

Home value: 395k

Principal on mortgage: 325k

[Carlos Valencia]

Hi Matthew, 

We can go up to 90% LTV but even at 90% there doesnt seem to be a lot of spread between 90 LTV and what you currently owe. Unless you can do some damage with about 30k which is how much you can potentially get based on your estimated value and remaining loan amount. You may just have to wait until you can get more if you need more. Find out how much you think you need and then run the numbers again to see if it will be enough. Heloc is the best option because even doin a cash out refi your also limited to 70 -80%. Plus you might have a good rate compared to todays market. You might have to consider other sources for your capital to buy your next investment. You can move out of your current and purchase your next property as a primary to get in with low down payment instead of having to put in 20-25% down. If your flexible thats also an option to continue acquiring. Hope this helps you.

@Albert Bui @Matthew Kwan