HELOC Guidance Needed

[Hillary Klumpp]

Hello BP team,

I'm going to utilize a HELOC from my personal residence to fund investment properties. Can someone please provide advice as to where I should start my search for an institution to provide my HELOC? I have access to my local credit union and small regional bank as well.

Any advice would be appreciated.

Thanks,

Hillary 

[Jonathan Bock]

@Hillary Klumpp

Equity is great for your personal residence but can you access it traditionally through conventional financing?  

DTI is crucial for these products even if you can get a higher LTV product if you can't meet the payments all the regulators don't care about your equity position.

One advantage is the interest only payments but most are tied to the prime rate so get ready for rate shock.