Heloc Rejected for investment, am I doing it wrong?!

Tacoma, Washington
Private Lending & Conventional Mortgage Advice
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Heloc Rejected for investment, am I doing it wrong?!

Clayton Bray
Member since 2021 · 13 posts · 6 votes

Hey BP! 

I got rejected from my credit union because I said that I was using my HELOC for investments. Should I just say home improvements or what? Were is the best place to get a 90%LTV loan thats interest only? We have great credit and income...

Thanks for the input! 

Clayton 

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Russell BrazilBusiness Member
Moderator
Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
3y

Using the money to invest is a no go.

Next time tell them you are going to use it for coke and hookers and it will get approved. 

[email protected]301-893-4635Podcast Guest on Show #192
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  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    3y

    Using the money to invest is a no go.

    Next time tell them you are going to use it for coke and hookers and it will get approved. 

    [email protected]301-893-4635Podcast Guest on Show #192
    District Invest Group546 Reviews
    WebsiteView Page
    4Reply
  • Matt Devincenzo
    Investor · Clairemont, CA · Member since 2011 · 3k+ posts · 2k+ votes
    3y

    Don't lie or tell them an untruth, but consider how you can use it that is truthful and achieves your objective. 

    Our house we plan to put on an addition relatively soon, or I may be putting an ADU on my duplex. In both cases the funds would be for property improvements. Would the ADU be a rental and could be classified as 'investment'? Sure, but I already invested into the property when I bought, and am now improving it by building the additional unit. Once the HELOC is approved I still have many years of use after what I originally planned the funds for. And of course then I can decide how to use it going forward.

    0Reply
  • Bud Gaffney
    Rental Property Investor · Boston, MA · Member since 2019 · 2k+ posts · 1k+ votes
    3y

    Yes. Say it's for home improvements.

    0Reply
  • Bud Gaffney
    Rental Property Investor · Boston, MA · Member since 2019 · 2k+ posts · 1k+ votes
    3y

    All the red tape is a joke

    0Reply
  • Danyllene Munoz
    Member since 2022 · 6 posts · 3 votes
    3y

    Some ways HELOC can be used for, home improvements, consolidating high-interest debt, start a business, paying for college etc.

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