What’s the Best Order?

[Christine Smith]

Hello, so we're looking to do our second investment property out of state in AZ after house hacking with FHA loan in Southern California for the past several years. Our current LTV is sitting right around 75%.

If we can find one, we're looking to do a HELOC and possibly a FHA 203k for an AZ property.

My question is: what is the right order of getting things ready? Apply for HELOC first? Apply for financing first? If 203k, do we need to refinance our current home before we apply? What steps am I forgetting?

I know HELOCs can be hard to come by right now. We are not in a rush. If we have to wait a few months that’s fine. 

Thank you!

[Bob Okenwa]

@Christine Smith

Applying for financing will be the quickest as the lender is required to provide you with a loan estimate within 3 business days of you submitting your application.

HELOC will take a little longer and can take a few days to a few weeks depending on the lender and how quickly you can get documents signed and turned in.

FHA has special rules about having two FHA loans, so I'd get with a knowledgeable lender and find out what works best for you situation.