All Forum Posts by: Brittany Minocchi

Hey @Chris A.

HELOCs on rentals are tough to find these days, the only one I know of is for single family properties that aren't in an LLC. HELOANs are easier to find if that's an option you're open to.

Home equity loan on a rental will be easier to come by than a line of credit, keep in mind LTV will be lower compared to owner occupied…probably around 70-75%.

There are HELOCs and HELOANs available on investment properties, usually anywhere from 70-85% CLTV depending on the product and your FICO. Rate may be fixed or variable. Minimum draw varies by lender, the lowest I've seen is $25k. Some require a full initial draw. Prepayment penalties could be a factor as well, so make sure to check on that so you don't run into problems later.

Most HELOCs have variable rates, but not all. As others have mentioned, they're available on investment properties but not as common as a closed end second. Expect a lower LTV compared to an owner occupied HELOC and a higher FICO requirement.

If you don’t want to lose your low interest rate by refinancing, a HELOAN would be an option. These also can be either fixed or variable rate. Sometimes you have to make a full initial draw, others have minimum draws….there are a few different options out there. 

Hi @Amir K.

HELOCs and HELOANs would both be a viable option if you don't want to refinance and lose your current rate. There are lenders that will do them on investment properties, it's just a little harder to come by and terms sometimes aren't as good compared to the same product on an owner-occupied property. Depending on FICO and product, LTV will vary. Happy to connect if you'd like to discuss.

Thank you for clarifying - there is an option for single family homes (investment properties included) that are not in an LLC. Feel free to send me a message to discuss.

Switching from W2 to 1099 in most cases will require a 2 year history of being 1099 for conventional financing. As others have stated, a DSCR loan will use the potential income of the property and compare it to market rents to qualify you, and it doesn't require income docs (but FICO is important).

If you’re looking for something like a debt ratio loan, the minimum loan amount is usually $75k+. If you’re looking for traditional financing, that shouldn’t be an issue. I frequently see loan amounts of $50k-$75k, just be aware there is usually a pricing adjustment on lower loan amounts which will increase your rate a bit. Happy to discuss. 

You aren't limited to a certain number of times to use an FHA loan, you just can't have more than one at a time (in most instances). So, if you get a conventional loan and decide to buy another primary residence after a year, you should be able to get an FHA loan.

If you just got approved for your first credit card, how did you have credit card debt? Or do you mean this is the first card you've been approved for since paying off the other cards? If the second one is right....why did you apply for a new card instead of using the cards you already had? 

To buy a primary, you don't need a 700. You'll get a better rate and better terms, but you don't HAVE to have that high of a score. If you're not selling your current home when you apply for a new mortgage, can your income support 2 mortgages? Can your income support 2 mortgages plus a HELOC payment?

As far as rebuilding your credit, my advice would depend on what it looks like now. It sounds like you've already made some positive moves, which is awesome! Paying down your debt, keeping credit card utilization as low as possible (but ideally below 10%) and NOT closing or opening any new accounts is a good place to start. If you think of any questions, feel free to shoot me a message.