Cash Out Refi vs. HELOC

[Reece O.]

Hello, Is a HELOC easier or harder to get than a cash out refi? Are they the same? My credit is good. I am only worried about denial from my income. I have over 40% equity in my property. Assuming that I cannot get either of these, would it be possible for me to find a lender somewhere that would take my property as collateral? Thanks.

[Account Closed]

I found the HELOC really easy to get. Even got it for free on a rental property @ 80% LTV, 4.75% 12 years interest only without closing cost or appraisal! Now using it as a down payment on another property closing this week. I would eventually channel more cash flow to the principal to pay it off quicker.

I would shop around local credit unions. The one I got didn't have a requirement for how long I must have the property. I'm also getting another HELOC on another property soon.

Cash out refi doesn't seem appealing to me in that it's 5-6k closing cost for less LTV. It's also not reusable. I still have the option to do that in the future if I don't have the need for HELOC anymore.

@Reece O.