I checked into my local credit union on how the HELOC rates were going and they are now offering (on owner occupied) 100% LTV at 5.25% which is up from 90% a year ago... the 80%LTV is at 3.25%.Is anyone using these crazy HELOCs as downpayments for bank loans or using the HELOC as the entire financing on its own?

HELOC?

I have a pair of investors (a conventional first lender via correspondent lending, and HELOC 2nd lender via mortgage brokering) that together will do 80/10/10 on owner occupied duplexes.

What happens  when you go for  a  HELOC ?

I called all the local banks and found one that will HELOC 75% the appraised value without seasoning for 10yr fixed at 6.5% which would cut cash flow down to $60/month (again before capex, so this starts to look negative.)I think I'm going to call around a bit more, but has anyone found a HELOC in NJ recently with better or longer terms?

I have learned a lot from all of you and love reading all the post and questions.I live in Houston tx in the spring branch area to be more exact and own a house in which I have a heloc loan of 10k that has expired n I'm making payments to pay it off.

There are other ways, but if this gets you in the game, then I would do it.I have used my HELOC as down payment money, and when i refinanced the property, I paid back the HELOC.Good LuckGino

Since my original post I have been snowballing still on my highest interest rate and used my HELOC to purchase 3 more houses (8Units total). 

I acquired a HELOC on one of my properties to utilize the money for cash buys and things like rehabbing.

All are located in a 5 star SoCal location.He has had trouble finding a traditional HELOC that will lend over $1,000,000, in part due to max loan balance restrictions, and part due to retirement DTI.