HELOC on Owner Financing

[Joshua Klempner]

Hello,

I just closed on an owner financed deal. I took title at closing and put 25% down and signed a promissory note to the seller for the remaining balance. I am wondering, if I approached a lender would I be able to take a HELOC on this property or would the promissory note prevent that.

[Rob Gillespie]

@Joshua Klempner

You have to take your credit, title seasoning, loan to value, and occupancy status into Consideration.

There may be language in your note That their shall not be a second Junior lien position, but if you bought from the homeowner I doubt they had that language in there.