Tap in on a rental for its equity as down payment along with DSCR Loan

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Tap in on a rental for its equity as down payment along with DSCR Loan

Jennifer Van de leur
Member since 2019 · 1 post · 1 vote

Good afternoon, I am hoping to put down as little as I can for a quadplex. I have like $130k in equity on one of my duplexes and I would love to tap in the equity as a down payment along with DSCR loan. Is it possible? I would hate to refinance my duplex and lose the 4 percent interest on conventional loan. Is there any other way to use its equity, without creating HELOC/LOC? My duplex is in Virginia and the 4plex is in Pennsylvania, if that matters..

TIA!
 

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  • Jason Taken
    Lender · Chicago, IL · Member since 2021 · 424 posts · 145 votes
    2y
    Quote from @Jennifer Van de leur:

    Good afternoon, I am hoping to put down as little as I can for a quadplex. I have like $130k in equity on one of my duplexes and I would love to tap in the equity as a down payment along with DSCR loan. Is it possible? I would hate to refinance my duplex and lose the 4 percent interest on conventional loan. Is there any other way to use its equity, without creating HELOC/LOC? My duplex is in Virginia and the 4plex is in Pennsylvania, if that matters..

    TIA!
     


     You only really have a couple of options.

    HELOC/LOC with the property as security.

    Refinance the first and walk away with a bigger first.

    A great way to get into properties with little money down though is to buy distressed assets at a discount, force appreciate them, and refinance to pull the cash out. We're funding deals with as little as title costs/insurance to close for experienced borrowers.

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  • Ko KashiwagiPro Member
    Lender · Los Angeles, CA · Member since 2022 · 967 posts · 445 votes
    2y

    Hi Jennifer,

    You can get a DSCR financing to do a cash out refinance or a 2nd position mortgage like a HELOAN.

    310-848-9776
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  • Erik EstradaBusiness Member
    Lender · Los Angeles, CA · Member since 2022 · 7k+ posts · 1k+ votes
    2y
    Quote from @Jennifer Van de leur:

    Good afternoon, I am hoping to put down as little as I can for a quadplex. I have like $130k in equity on one of my duplexes and I would love to tap in the equity as a down payment along with DSCR loan. Is it possible? I would hate to refinance my duplex and lose the 4 percent interest on conventional loan. Is there any other way to use its equity, without creating HELOC/LOC? My duplex is in Virginia and the 4plex is in Pennsylvania, if that matters..

    TIA!
     


     Hey Jennifer, 

    The only other way that you can tap into the equity from another property to purchase a new one, without having to refinance or obtain a HELOC is through a cross collateral loan. Lenders will allow up to 65% CLTV on a short term loan. I do not recommend this route unless you have a solid exit and experience.

    You are better off doing a HELOC on your current property or second mortgage

    [email protected]818-269-7983
    LuxePrivate Investments LLC 571 Reviews
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  • David Pearl
    Lender · Member since 2024 · 121 posts · 14 votes
    2y
    Quote from @Jennifer Van de leur:

    Good afternoon, I am hoping to put down as little as I can for a quadplex. I have like $130k in equity on one of my duplexes and I would love to tap in the equity as a down payment along with DSCR loan. Is it possible? I would hate to refinance my duplex and lose the 4 percent interest on conventional loan. Is there any other way to use its equity, without creating HELOC/LOC? My duplex is in Virginia and the 4plex is in Pennsylvania, if that matters..

    TIA!
     

     @Jennifer Van de leur - We are a nationwide lender based out of VA! Happy to discuss. We specialize in DSCR loans.

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  • Jay HurstBusiness Member
    Lender · Dallas, TX · Member since 2017 · 1k+ posts · 1k+ votes
    2y
    Quote from @Jennifer Van de leur:

    Good afternoon, I am hoping to put down as little as I can for a quadplex. I have like $130k in equity on one of my duplexes and I would love to tap in the equity as a down payment along with DSCR loan. Is it possible? I would hate to refinance my duplex and lose the 4 percent interest on conventional loan. Is there any other way to use its equity, without creating HELOC/LOC? My duplex is in Virginia and the 4plex is in Pennsylvania, if that matters..

    TIA!
     


     130k sounds like a lot of equity, BUT most second position products are only going to go up to 70% or 75% loan to value. so, you can not borrow a large portion of that equity. If you would like real numbers  on what you can potentially borrow lay out what you currently owe and what you think the duplex is worth?

    Hurst Real Estate, INC4.986 Reviews
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