I have a question about stock and getting a HELOC loan?

[Adam Houser]

I have a question about getting a HELOC loan. Is there any restrictions as to what I can get a HELOC for? I want to get cash via a HELOC to buy stock. Before I go through the process, can this be done?

[Al D.]

1. To get a HELOC, you have to own real estate. This is a must.

2. Your real estate has to be able to appraise for high enough over any currently outstanding debt(s) on/against it (that is called your “equity.”) That equity typically needs to be 20% (maybe 25% - this depends on whether this is your primary residence, condo, etc., and varies by lender) over the total debt - including the planned HELOC maximum.

3. Once approved, you should get a checkbook. You can also withdraw cash directly from a teller. You may be able to do a wire.

4. Assuming you have (1) and (2), why would you want to risk investing in the stock market when it is at its historic peak? This is your choice, of course.

5. If you have a “sure bet,” please PM, Gordon Gekko.