Then borrowing from your HELOC at 4.5% will save a significant amount of interest.

I'd expect something in the 70%-75% range, depending on your experience and credit score3b) Also, do you need to borrow $160k?

KW is a very popular choice for new agents because of the company culture.

Do you think the bank’s loan will consist of one document, drafted by your borrower?

Hi Wendy,Coming from a Banker in most cases the Heloc is a Line of credit you only pay on the amount you use and a Heloan is the bank/lender gives you all cash.Lets say you borrow $10K as a heloc and in the first few months you take out $1500.00 your payment is only going to be based off the $1500 and not the $10K because the rest in the line of credit (LOC) not being used - Same as a credit card.

Hi I am looking for HELOC on a primary SFH...speaking with some lenders I've run into two issues....(1) some won't give you credit for rental income if you haven't owned the property for two years (show two years of stable rental income) which can skew your DTI unfavorably (2) one lender said they don't give a HELOC if a borrower is carrying more than 6 mortgages.Would anyone have any leads for a potential lender?

In this instance what I would do is get the deed in lieu from the borrower so you ahve the property again and get a note from them but have an attorney draft it to see if you can include a confession of judgment - meaning if they do not pay then you can get a quick judgment and possibly garnish wages.I would also have them put a small down payment as part of the note and only accept a check that way if you ever did garnish you have a copy of a check so you know where they bank.unfortunately you are right they can stop paying on the note and its unsecured so its a risk but out of all the options this is your best option. 

I think this is a calculation a lot of homeowners are making right now--especially if they have a low interest mortgage, equity, and their house will cashflow as a rental.The choice is a personal one of course, but I think your future self will thank you if you pull out some equity from your existing home with a HELOC for the downpayment on the next house and a cushion renting your current home, use a property manager as you have other things to do, and buy the next house and do the same thing again.

Borrower experience: Will you lend to newbies?

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