Updated about 5 years ago on . Most recent reply
Second Property - HELOC
Hello, we're looking at purchasing our next property. Our first property is our primary residence, with a back house. To make the next purchase, we're looking to use a HELOC on our first property for the down payment.
What I don't understand yet is how we finance the balance. With 20% down, what will brokers be looking for to qualify us for a loan on the balance? Will it be the same as it was from our first property, which is FHA? Given the second property is clearly a rental, will we be able to use the rental income at 75% to help qualify?
Thank you for your help!