All Forum Posts by: Brittany Minocchi

Do you HAVE to put them in a portfolio, or can you cash them out separately with conventional financing? If that's not an option, I may know of a lender who will go a bit below $75k per property for a portfolio. Depends on the scenario. 

Hi Guillermo, 

Many investors utilize HELOCs on their primary and/or investment properties to acquire more properties. If you have a sufficient amount of equity available to you, this could be a viable option. Depending on how soon you need the funds, there are programs that fund in as little as 5 days. 

Many of the investors I talk to have used this strategy or are planning to. This applies to primary homes and existing investments - investments are trickier to find HELOCs for (especially if the property is a multi-family or in an LLC), but HELOANs are a popular option. Just be sure to have a plan in place to get it paid off.

Different lenders will have different LTVs, or limits on how much of the equity you can borrow. They may have an annual fee or require you to draw a certain amount at closing. Some are fixed rate, some are variable. You don't necessarily have to go somewhere local and you definitely don't have to do it by going into a branch. Some require a full appraisal, some will use an automated system. DTI limits may vary as well.

As someone else mentioned, there is a 5-day HELOC product that funds pretty quickly, but the rate is fixed, not variable. It goes up to 85% LTV on a primary and will depend on your FICO. 99% of the process is automated and there are no rate sheets or pricers for me to use to get rates, but most of what I see is double digits. This product specifically is good for people who might struggle with a traditional underwrite, because there isn't really any income "calculation". You link accounts and it looks for deposits that are sufficient enough to cover your payment. In most states, joint/marital income can be used. So, you can use the debts of ONE person, but potentially count the income of multiple. Don't need to cut rental income by 25% to account for vacancies either, which helps.

I don't usually recommend using a HELOC without a plan in place to pay it off, because most do have variable interest rates and who knows which direction they’ll go. You don’t want to over-leverage yourself with your personal home on the line  

Are the properties being rehabbed and are you looking to pull based on the purchase price or ARV?

For a primary or investment home? I know of at least one program that allows first position in either case. 

Hey Leah! 

You won't find specifically a DSCR loan that'll allow an owner occupant, but there ARE programs for primary homes that don't factor in your income or employment to qualify you. However, you're going to need good credit (680+), many months of reserves and 20%+ down.

Hey Timothy! Welcome to the forums.