How to use HELOC to fund down payment?

[Sean McKee]

Hi,

I am going to be using a HELOC to fund my next property. The HELOC came with two starter checks in the mail I am able to use. How would I actually go about accessing the HELOC funds for the down payment? Would I need to write a check to my personal bank account and then get a cashier's check once the funds were transferred? Or can I transfer the money directly from the line of credit to the lender for the down payment?

Trying to think through the process of actually using the HELOC funds. I appreciate any feedback, thanks!

Sean

[Jon K.]

Quote from @Sean McKee:

Hi,

I am going to be using a HELOC to fund my next property. The HELOC came with two starter checks in the mail I am able to use. How would I actually go about accessing the HELOC funds for the down payment? Would I need to write a check to my personal bank account and then get a cashier's check once the funds were transferred? Or can I transfer the money directly from the line of credit to the lender for the down payment?

Trying to think through the process of actually using the HELOC funds. I appreciate any feedback, thanks!

Sean

Other banks may be different but I have a savings account at the same bank that holds my heloc. They will not allow me to wire funds directly from the line of credit. So I have to transfer it to the savings account first, then wire it from the savings account.

Your best bet to get a definitive answer is to call the bank that has your heloc and ask if they can provide cashiers checks and wire transfers from it or not. Most title companies and closing attorneys these days want wires in my experience.