Forget Portfolio Loans => HELOCs now at 100%LTV

[Lane Kawaoka]

I checked into my local credit union on how the HELOC rates were going and they are now offering (on owner occupied) 100% LTV at 5.25% which is up from 90% a year ago... the 80%LTV is at 3.25%.

Is anyone using these crazy HELOCs as downpayments for bank loans or using the HELOC as the entire financing on its own? These are pretty comparable to the best Fannie rates you can get on non-owner occupied which is 5% +/-0.5% without origination fees.

There used to be a good site here but I don't think it updated much:

http://www.fatwallet.com/forums/finance/150875/?st...

[Kimberly Jones]

You should always think long and hard about using the equity in your personal home to buy investment properties. If anything goes sideways and you find yourself in too deep, you don't want to lose the roof over your head because of it.