All Forum Posts by: Suzie Remilien

@Mike Montanye Agree with Eliott. How important is liquidity to you? Equity earns no rate of return!

@Wendy S. In this market, you are unlikely to get 90% LTV even with a primary residence HELOC. In addition to the lower combined LTV, credit score and DTI are the main factors to consider. Property valuation in the form of broker price opinion (BPO) will likely be required. A lender can speak to your specific scenario and that is why my comments are general. For example, I recently learned that some lenders will not do HELOCs on 3-4 unit primary residences. Max LTV was 85% for 1-2 unit primary residences.

Hoping other folks will jump in if I forgot something. 

@Mike Paquette Consider getting a secured credit card if you don't have one already. Use it responsibly and then graduate to a regular credit. Learn more: https://www.consumerfinance.go...

@Wendy S. You need to have some equity in a property, typically at least 20%, for a line of credit. Your second option is more likely (at lower LTV though), and you may have to shop around for local/community bank for the HELOC.

The ratio of your debts to your income still has to be under 50% for some products so you need to be able to carry the added debt load. You should have relatively good credit. Also keep in mind that the HELOC payment will be interest-only during the draw period. That payment is composed of the prime rate, currently 7.75%, + margin. In this interest-rate environment, it is possible for the variable rate HELOC rate to exceed the rate of your first mortgage. Six-month seasoning may be required. Speak to several lenders to see if you qualify!

The HELOC is one option, but so are healthy savings!

@Kayla Birkhead Try the Homestyle Renovation Loan. It's a Conventional loan that finances purchase and rehab costs (labor, materials, permits), and it is a bit more flexible than the FHA 203K. Licensed contractor is required, but a lender may allow borrower to do a portion of the renovations. Homestyle loan can be used for primary residence or investment property. Learn more at the Fannie Mae website and speak to your local lender.

@Jeremy W. Congrats on making the decision to begin!

I would suggest talking to a lender first to give you time to take care of any credit issues first and then get prequalified. Next, contact a local agent to discuss goals and properties, etc. You may be taken more seriously with a pre-approval in hand. However, the order is not strictly important if this step is just going to hold you back. As you stated, just begin already. :)

Dad may be able to add you to title via a quit claim deed. Once you are on title you can refi using your income/credit/assets. Consider reaching out to the lender of your dad's property. 

Looking forward to others pitching in to give you more state specific info as well. 

@Ryan TrygarYou could try to refi the HELOC to get a larger line if there is more equity in your primary home.

Another option is to get a HELOC on the investment property once you have built some equity to fund those future deals. Just make sure to keep an adequate gap between income and debt to continue to qualify for future mortgages.

@CJ M. Congratulations on your accomplishments. It's definitely a grow rich slowly game. Cash flow may be low at the beginning, but principal pay down and those tax advantages will put money in you pocket too. Thank you for the motivation!

 You're welcome!