Lending down payment/ introduction

[Ian Hutton]

Hi everyone! Exited to be apart of BP I’m from riverbank Ca, and am looking into out of state investing.

In April of 2023 I’ll be renting out my primary property, but I’ll also have 10k saved up for my first official investment property 
I’m planning on using a Heloc of 10/ 20/  or 30k in addition to a down payment. 

My question is can I use a bank/ credit union for this? Or do they not do out of state investing. I’ve already talked with a few as of today and seems like they do not do loans for that. Thank you in advance and Again in the Modesto,stockton, riverbank, Tracy area

[Russell Kapuniai]

There's a big advantage to getting a HELOC on your primary residence - mainly interest rates and terms, your local bank may waive closing costs depending on the HELOC amounts. Once you have it, you can pretty much use it for whatever and where ever you want since it could be used like a cash account.

Regarding your financing for your out of state investment, you need a lender who is licensed to finance in that state. Mortgage brokers are a good way to go since they are typically much bigger and have locations in multiple states so most can meet that requirement. You could also reach out to a local lender/bank/credit union in the area you plan to invest and get financing through them. Check with your realtor or property manager in the area you plan to invest and ask them for a good referral to a local lender that they send their clients to or use personally.