Hudson, NH · Member since 2017 · 8 posts · 0 votes
Hello all,
I have applied for a 85% LTV HELOC from PenFed Credit Union on a 4-unit multi family that I owner-occupy. I plan on using the HELOC as short term debt towards purchasing/renovating more real estate. After the newly acquired property is stabilized I would then do a cash out refi to recover my personal funds and pay off the HELOC debt.
I am having trouble deciding if it would be best to apply individually or jointly with my spouse. If we apply jointly we have a lower debt to income ratio and are able to borrow $220K. If I apply individually I qualify to borrow up to $170K but my wife's credit won't be affected. This could be useful when it comes time to refinance.
I am personally always of the mind set to keep it simple and do the HELOC by yourself. That way if you all ever need anything you can leverage your wife's credit since it would be free'd up. If you're good with $170,000 then it just doesn't seem worth it to go up to 220k. Hope I can be of assistance!