My husband and I recently purchased a 2fam property(almost 6 mos ago) using a VA loan and I already want to start thinking about our second property.
Is it too soon to think about a HELOC? How much cash should we have saved before we consider going for it?
We went to our small community bank and were told we needed at least 30% down. Is that standard?
Did you get the VA loan with 0% down? Then, yes, it's too soon. HELOCs usually max out around 80% LTV.
Sometimes you can get a conventional loan on a 2nd property at 20%, but usually between 25%-30%.
For an investment it would be at least 15 percent down with it most likely being 20 or more percent
I've done a ton of shopping around conventional loans lately. Below are what I've seen pretty consistently. Keeping in mind I have good credit - miles may vary here. :)
I wouldn't recommend under 20% because then you've also gotta pay PMI.
MFH: 25% (down)
SFH: 20% (down)
MFH: 25-30% (down)
SFH: 25% (down)
Thank you all- this was all very helpful and I now have a better idea of where to go from here. I will wait and save up a little more before proceeding.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Join the Largest Real Estate Investing Community
Basic membership is free, forever.