)I would like to be more competitive offers as I search for a primary residence property. I have 60% (500k equity in my current primary residence, which I'll convert to a rental once I move out. I have another rental with 100% (800k) equity.
I have been offering 20% down offers, but would like to offer all cash or a sizable down to be more competitive. Can I accomplish this with using HELOC or Home Equity debt products?
Rental Property Investor · Chandler AZ and Sylvania, OH · Member since 2009 · 708 posts · 561 votes
6y
@Edwin Ro are you looking to buy another primary? If so you should offer less than 20%. If I was to buy another primary I would offer a higher purchase price and 3% down or whatever the minimum is for a jumbo loan. With the interest being so low, I wouldn't put in a nickle more than I had to. I think the seller will be happier with a higher sale price than a cash offer. When we sell, I'm fairly indifferent to cash or financing buyer as long as my price is met. I can wait the extra 25 days for financing to be approved. A quick close does nothing for us, only reason I would accept cash is if I think the comps aren't going to support the asking price.
Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
6y
You can get a Helco on your primary but I would not mention moving or converting to a rental when you do. You could finance your rental at 80% LTV if the numbers support it. Not sure how applying for loans concurrently will impact your financing.
@Edwin Ro are you looking to buy another primary? If so you should offer less than 20%. If I was to buy another primary I would offer a higher purchase price and 3% down or whatever the minimum is for a jumbo loan. With the interest being so low, I wouldn't put in a nickle more than I had to. I think the seller will be happier with a higher sale price than a cash offer. When we sell, I'm fairly indifferent to cash or financing buyer as long as my price is met. I can wait the extra 25 days for financing to be approved. A quick close does nothing for us, only reason I would accept cash is if I think the comps aren't going to support the asking price.