I want to purchase an investment condo for $150,000.
I want to get Heloc loan from my other investment condo for $50,000 and use it as downtown payment for this condo.
Can I get a 30 year fixed conventional loan for $100,000 and use $50,000 for down payment from heloc?
I also want to combine it to one $150k 30 year fixed loan instead of having two separate $100k and $50k loans
what options do I have can anyone help.
I don't want to use my own money.
Hello Ralph,
Yes you can used a HELOC from another property as a down payment for a new one, then get traditional financing on the remaining 100K. You would be 100% leveraged, and you'd have 2 separate loans (One HELOC and traditional mortgage). I'm unsure if you would be able to combine both loans given that the HELOC is tied to a different property than the one you got traditional financing on.
A work around is if you are able to purchase the new property with the HELOC at a significant enough discount, bring the property value up via renovations or additions, then refinance the property, pulling out enough money to repay the HELOC.
Hope this helps. There's a lot for nuances to the strategy than what I typed out, but this should help you get started. I did a similar strategy for my second property. Open to connecting if you are.
As Monico answered you can do the HELOC for the down payment. Although you will be unable to combine them for a while unless the place appreciates rapidly.