Primary residence home equity use

[Pat Noyes]

I am looking at one of two options. 1) get a HELOC on my primary residence and use it for a 20-25% down payment on a multi family. OR 2) sell our home and use the proceeds for a) 3.5% FHA or 5% conventional down payment on a primary single family to live in for 1 year then rent out PLUS b) 20-25% down payment on a mult family unit. Thoughts and/or other ideas?

[Richard Sherman]

@Pat Noyes Sure thing! ALWAYS talk to other vendors/lenders/realtors etc. Illustrating point. We are in contract on a 20 unit apartment for $1.9 Million. The seller ALREADY has a loan with Chase for the property (so they are familiar with it and have loaned on it repeatedly. I ALSO have all of my personal accounts AND several business accounts with Chase. They should be the perfect lender for me. I talked to them and they would go only to 60% LTV....they were willing to loan me LESS money than I had on deposit with them!!!

So I talked to another lender, and for a better rate got 75% LTV for the same product (5+5 with an initial rate of 4.75% and a lifetime cap of 5.25% for the second year term and 30 year amortization (INCLUDING the second 5 year term)....for whatever reason Chase just was not interested in that property/market whatever. Moral of the story is, do not assume anyone vendor is

A. competent and has a clue what they are talking about  

B. Maybe they are just not specializing in what you want to do or not in that space