All Forum Posts by: Josue Lopez

Your best bet here is to start working with a loan professional to plan out the best strategy for you. Hopefully, you already have someone. If not, ask around to friends and investors in your area.

As far as I know, HELOCs are reserved for primary residences so you would have to move back into the triplex first. Not sure if there are exceptions to this but, again, leverage your loan pro's knowledge!

Shouldn't be any issue getting that HELOC and pre-approval at the same time from the same lender. In fact, this would be the smart move since you'll get your credit pulled for each. Doing them together avoids a double hit to your score.

And that's about the extent of my knowledge on the subject but figured something was better than the nothing you've gotten so far. Hope it helps a bit! Reach out anytime if you have other questions or just want to chat.

Thank you for your response Brenden,

I was excited until I was met wirh the owner occupancy requirements to use my equity/funds.

I'm back to the drawing board but excited for the knowledge I'll gain from this challenge....there has to be a way!

1 Vote

Quote from @Andrew Garcia:

Hi @Josue Lopez, below are my answers.

1. You can do both simultaneously. A HELOC might not be your best option, however.

2. You can use a HELOC for a down payment but it will affect your debt-to-income ratio. HELOCs are lines of credit, not fully amortizing products so the terms vary based on your scenario.

3. You get better rates and terms on a primary residence.

4. You can get approved for both. You need to reach out to a qualified lender that can help you.

Hope this helps! Let me know if I can be of any assistance.

Thank you Andrew,

I thought I had it all planned out, until I was met with the owner occupied clause.

The property has plenty of equity and great rental history but it seems useless under these guidelines...

I guess removing a tenant and moving back in will make things easier or less riskier for the lenders

I've considered a dscr loan but they also are requiring 20% percent down so I'm back to square one. I guess im saving for another year or planning a move.

Thanks again for your response.

0 Votes

MY VOTE WOULD BE SHORT TERM RENTALS, SOMETHING LIKE SUB LEASING A RENTAL SPACE ON AIRBNB AND MAXIMIZING YOUR INCOME. A GREAT START WOULD BE SOMEWHERE IN YOUR AREA SO THAT YOU CAN MANAGE IT AND GAIN EXPERIENCE BEFORE VENTURING OUT AND EXPANDING TO OTHER AREAS...JUST A THOUGHT :)

3 Votes

BACKGROUND: I WANT TO PURCHASE A SECOND INVESTMENT HOME, I CURRENTLY DONT LIVE IN MY HOUSE I RENT IT OUT COMPLETELY (3UNITS), IVE BUILT UP ENOUGH EQUITY AND I WOULD LIKE TO USE IT.

QUESTIONS: DO I APPLY FOR A HELOC FIRST OR A PRE APPROVAL FOR A PROPERTY? CAN I DO SO SIMUTANEOUSLY?

CAN I USE A HELOC FOR A DOWN PAYMENT? IS THERE A TERM FOR THIS TYPE OF LOAN?

SHOULD I BE "LIVING" ON THIS PROPERTY TO BETTER MY CHANCES AT A HELOC? HOW DO I APPROACH IT?

REALISTICALLY I WOULD LIKE TO GET APPROVED FOR A MORTGAGE LOAN AND ALSO APPROVED FOR A HELOC ON MY CURRENT PROPERTY SO THAT I CAN ADD VALUE OR REPAIR THE "NEW" PROPERTY FOR QUICK TURNOVER/RENTAL AM I BEIGN IGNORANT OR IS THIS POSSIBLE??

THANKS!

1 Vote

All Forum Posts by: Josue Lopez

Josue Lopez has started 1 posts and replied 4 times.

Post: IS THERE A TERM?! HELOC, INVESTMENT PROPERTY, PRE APPROVAL

Post: IS THERE A TERM?! HELOC, INVESTMENT PROPERTY, PRE APPROVAL

Post: QOTW: If you had an average income, but don't want to househack..

Post: IS THERE A TERM?! HELOC, INVESTMENT PROPERTY, PRE APPROVAL