Heloc help needed in New Jersey

4 Replies

Hi All,

How soon can you apply for a HELOC once your mortgage is paid off. I have under $40k left on my investment property, I'm paying it off with a personal loan and was just curious as to how much time I need to wait before applying for the HELOC. Additionally, will I need to change the title out of my business name to my name? Thanks in advance.

The question is not how much you have left to pay off, it is how much equity do you have in the property? The heloc is a "home equity line of credit," it is based on the equity in the property, you are basically borrowing against yourself by tapping into the equity in your home. Lenders will typically lend up to 80% of the equity in your home, so if you have 100K in equity, you might be able to borrow 80K against your property. 

Originally posted by @Jennifer Petrillo :

The question is not how much you have left to pay off, it is how much equity do you have in the property? The heloc is a "home equity line of credit," it is based on the equity in the property, you are basically borrowing against yourself by tapping into the equity in your home. Lenders will typically lend up to 80% of the equity in your home, so if you have 100K in equity, you might be able to borrow 80K against your property. 

Thanks Jennifer. Yes I’m aware but I’m asking is there a waiting period  once it’s paid off. The home definitely has equity. 

You can apply for a heloc at any time, as long as you have equity in the home. The primary mortgage does not need to be paid off. I would start with your mortgage lender, but you could also shop around and give other banks the opportunity to give you a heloc. This way you can compare the rates they are offering you.

I must ask...why are you paying off your investment property with a personal loan?

Originally posted by @Jennifer Petrillo :

You can apply for a heloc at any time, as long as you have equity in the home. The primary mortgage does not need to be paid off. I would start with your mortgage lender, but you could also shop around and give other banks the opportunity to give you a heloc. This way you can compare the rates they are offering you.

I must ask...why are you paying off your investment property with a personal loan?

We are having trouble finding a lender who will refinance for such a low amount. We found one that we thought was workable but they will not because our business name is on the title. 

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