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Updated over 4 years ago on . Most recent reply

Heloc on investment property for self employed
Hey all!
Im thinking of tapping into the equity on my first investment property. I’m not going to go over 80% ltv as I know that’s not allowed.
But how easy is it to get a heloc on an investment property?
Is it risky - the property cash flows really well so not worried about paying the loan just don’t know other risks of heloc a if there are any?
I’m newly full time self employed I just went full time as a realtor in February. Would this disqualify me? Thanks
Most Popular Reply

Hi @Matt Tallent, it doesn't sound to me like you'll have a problem here. A HELOC is, in general, is a bit different than a loan to purchase a property. Since you already own the property, the bank is simply going to be making a decision on (1) their personal exposure to risk right now and (2) the risk position a HELOC on this property would put them in. Since you are content to keep it at or under 80% LTV you should not have an issue there.
Where you're likely to see the trouble is in speaking with a lender. I think they all hopped on a secret SpaceX flight or something. They're gone . . . outta here!
no, but seriously the lending systems are broken. They are starting to slow down a bit from the INSANE peaks for purchases and refinances that happened . . . May-September? . . . and you should anticipate some longer-than-average processing times for your HELOC request.