Financing options on a short term rental

[Jay Bickmore]

I have been under contract with a new development for over 6 months now. It will be completed in the next month or so. Meanwhile the value has gone up drastically and I probably could get 20% if it is financed off of appraisal instead of sale price. I have two different options for financing and would like some input.

The first option would be to do it as traditional financing as a second home. We would be able to put 10% down but then have to pay PMI. We have already deposited 10%. The second option would be to use my HELOC to pay for it. Do you know if I use my HELOC to purchase it would I be able to refinance it based off of appraisal value within a month or two or do I have to wait a certain time period? I have already talk to probably 10 or more banks to see if I can find one that would go off of appraisal value but all of them so far have said they go off of sale price with financing.

Hopefully that makes sense if not I would be more than willing to clarify.