All Forum Posts by: Austin Fowler

@Meg K. my lender does not charge closing costs for the HELOC and yes there will be closing costs for the cash out refinance and most lenders will only allow you to borrow up to 80%. So given you have at least 20% equity from the down payment you made with the funds from the HELOC + additional equity that was either already in the property or from renovations, you should have enough equity to pay back the HELOC and pay closing costs.

Hi, All!

I just applied for a HELOC with my credit union that is offering a 5 year draw, 15 year repayment at a 5.49% fixed rate. 4.99% fixed rate for a 10 year repayment. I went ahead with the 15 year repayment. This is my first investment property and first time using a HELOC. I would like to know how others have used a HELOC for just a down payment on an investment property. Is it best to refinance the investment property soon after purchasing to quickly pay back the HELOC? Obviously 30 yr investment mortgage rates are much higher than the HELOC but I am not sure I should keep 3 loan payments (primary residence, HELOC and investment property). Or do people use the full 15 years to pay down the HELOC and keep 3 monthly loan payments? Paying on a HELOC means I am paying interest on my equity which somewhat does not seem smart. Just looking for what has worked for others. Thanks

Everett,

Send me an email.

Hi Rudy,

In case it can help w/ your funding plans, you might also consider unsecured funding. Funds can be used for down payment or gap funding, as well as 100% funding of a purchase. These can report to your business credit and therefore not show on your personal credit.

Be happy to connect.

Best,

Dave

thank you Dave i appreciate you replying, i am brand new to real estate , just bought my first house in las vegas, so i'm lo on funds , would like to possibly buy a rental property, i only have 10k to work with

Check this loan out: https://www.cmgfi.com/all-in-o...

I've shared about it before, not a lot of people know about it. I'm not a lender, but I'm in real estate and I see the value in this product. It's not for everyone, but it allows you access to the equity in the property without having to open a HELOC up.