All Forum Posts by: Account Closed

Understood:-) thank you everyone for your replies. I won't be "yapping" anymore :-) And going to look into smaller local banks just saying "I would like to apply for a HELOC"

2 Votes

Originally posted by @Brendon Foster:

Sounds like that is their personal policy. There are many lenders that will allow you to use your HELOC. just need to figure out what your payment will be on it to figure out the debt to income ratio.

0 Votes

Yes I understand the DTI ratio part. Just don't know how that works. Let's say hypotheticaly, I opened up a HELOC with no specific purpose or with remodeling of my primary residence in mind. But then down the line changed my mind and now want to use it to purchase an investment property. Do I have to specify the reason of that draw to my HELOC holder?

0 Votes

I have heard so much about people successfully using HELOC as a down payment for investment property. Decided to do the same. We owe 95K on our primary residence, wich is valued around 200k. Went to the bank today, the same one which we have our mortgage with. Before applying I decided to ask if I could use the HELOC for down payment on an investment property. Here was the answer " Technicaly, if you were to disclose to us that you are going to use HELOC for investment purposes our rules are that you can't use HELOC for that"

So here is my questions. How do you interpret that answer?

0 Votes

Just Google FHA Chash Out Refinance. You will see all the requirements, terms and limitations.

0 Votes

I believe you can refinance out of FHA if you already reached 20% of the purchased price in equity to get a conventional loan. But compare the rate. FHA usually have lower rates.

0 Votes

Originally posted by @Mario Flores:

ok. this is my situation. its basic.

primary home worth 162k. Zillow estimate 198k. I want to buy second home. Is opening a heloc the best option for downpayment. mortgage broker told me I would need to rent my home and put 5% down. what other options do you guys recommend

What do you mean worth 162K and Zestimate is 198K. What is your actual balance, hiw much you owe the bank?

1 Vote

Thank you, Yuriy. That put my mind to ease. Learning every day.

Svetlana

0 Votes

Originally posted by @Yuriy Skripnichenko:

@Adam Dow

It depends on your local landlord-tenant law.

In Philadelphia it takes about 3 month from the date you file with the court to evict a tenant.

Here it makes sense to evict only if you have tenant that doesn't pay at all. Tenant that pays but late is still paying tenant.

You should have late payment fee. Which can be a good addition to your rent income. I have a tenant who is always late but always pay on the same day (the 14-15th). I get 5% more rent from here because of the late payments.

We have the same kind of tenant, only $35 late fee is due after the 5th and $5 additional daily after the 10th. But I worry that, I didn't not specify in the lease when the eviction is going to start and they might use that excuse one day to delay payment even further.

Svetlana

0 Votes

Originally posted by @James Wise:

We run a rather large portfolio (800+ units) & what has worked the best is to set a date & just evict everybody on that date. Typically that date for us is the 15th. It could vary by a day or two depending on holidays or Sundays etc but generally speaking once the 15th rolls around we put out the 3 day notice. After that we file with the courts. So all tenants, no matter what get evicted after it's filed with the court system. Keeps it really simple. It's 100% black & white. No gray.

What if they would pay you the full amount after a couple of days you filled for eviction , would you still proceed , or let them stay? Just a newbie question?

Svetlana

0 Votes

All Forum Posts by: Account Closed

Account Closed has started 4 posts and replied 137 times.

Post: Bank stated that HELOC CAN NOT BE USED AS DOWN PAYMENT

Post: Bank stated that HELOC CAN NOT BE USED AS DOWN PAYMENT

Post: Bank stated that HELOC CAN NOT BE USED AS DOWN PAYMENT

Post: Bank stated that HELOC CAN NOT BE USED AS DOWN PAYMENT

Post: help on buying second property strategie

Post: help on buying second property strategie

Post: help on buying second property strategie

Post: How many chances do you give a tenant who pays late?

Post: How many chances do you give a tenant who pays late?

Post: How many chances do you give a tenant who pays late?