Can I get a HELOC if I just purchased thru seller financing?

Can I get a HELOC if I just purchased thru seller financing?

Real Estate Investor · San Francisco, CA · Member since 2016 · 42 posts · 12 votes
Hello BP! So I just purchased a SFR on a seller finance. Escrow closed with no problems and I now hold title. My question was if I could attain an equity line on the newly purchased property if I have no equity in it yet since I did a 3 year interest only with a ballon payment on the backend with no money down. Any help or advice is greatly appreciated. Thanks in advance!!
0Reply
18 views

5 Replies

Jump to latestLatest
  • Rental Property Investor · Phoenix/Lima, Arizona/OH · Member since 2012 · 4k+ posts · 4k+ votes
    10y

    Nope, but  nice try :)

  • Investor/Syndicator · Cincinnati, OH · Member since 2014 · 470 posts · 599 votes
    10y

    No, lenders will want their position secured and with no equity there is no place to be secured. 

  • Real Estate Investor · San Francisco, CA · Member since 2016 · 42 posts · 12 votes
    10y
    Even with the purchase price being way below market value?
  • Escrow Officer · Temecula, Ca. · Member since 2016 · 418 posts · 152 votes
    10y

    If you find a lender who does online appraisals or creative structuring, you might be able to find a 2nd lender. What will the final LTV be?

  • Real Estate Investor · San Francisco, CA · Member since 2016 · 42 posts · 12 votes
    10y
    Well I believe the home will appraise at around 350,000 once I paint it and my loan is 240,000..
Join the conversationCreate a free account to reply, vote on answers and follow this thread.