Using HELOC to Purchase your First Home

[Tyler Morris]

I'm currently looking to purchase a new home and heard about a home equity line of credit. The concept seems really cool and the potential to pay off your home faster while still having access to the funds is very appealing. Does anyone know if you can purchase a home with a HELOC or a strategy to use one immediately after purchasing?

[Ashley Kehr]

Hi Tyler. Would you be purchasing the house in cash then opening a heloc? In my experience you must own the house to open the heloc. If you purchase a property with a conventional mortgage that is under valued or you add value then you could go the bank and ask for a heloc on the equity built up.