Using lines of credit for property puchase

[Jonathan L.]

Recently, I have decided to try and fund my next property using the line of credit. I have $80k in LOC the interest rate is 9%. I would like to take out a mortgage on the property six months after purchasing it. However if I max the LOC I may find myself unable to qualify for a mortgage due to DTI and/or lower credit score due to high utilization rate of my overall debt. with that said, Would it be a good idea to use this funding source to purchase a property to hold?

Any assistance in this matter would be appreciated

[Mike D'Arrigo]

@Jonathan L.

The LOC is not going to be a problem when you go to refinance it in to a conventional mortgage because you are going to be paying the LOC off. The lender might require you to close the LOC but you should be ok.