Refi or heloc

Effingham, Illinois
Private Lending & Conventional Mortgage Advice
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Refi or heloc

Chad Chapman
Member since 2022 · 5 posts · 3 votes

We have a rental that we finished the remodel on. I was going to refi it but I like the idea of the heloc for a fast cash if needed. I'm torn in what to do and want to hear what some others have done when faced with this situation. No matter what I have to get 50k to pay off the hard money we used for the purchase and rehab. 

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Derek BrickleyBusiness Member
Lender · Ann Arbor, MI · Member since 2021 · 686 posts · 232 votes
1y

Hey Chad,

Depends if you want/are able to do full documentation lending or need property based options (like DSCR). If you are able to work with full documentation programs, that refi would likely be the absolute quickest way (a couple of weeks) where HELOCs might take 3-4 weeks. Also depends how long ago you purchased the property so a few details there to work through but feel free to reach out if it's helpful to look at those.

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  • Derek BrickleyBusiness Member
    Lender · Ann Arbor, MI · Member since 2021 · 686 posts · 232 votes
    1y

    Hey Chad,

    Depends if you want/are able to do full documentation lending or need property based options (like DSCR). If you are able to work with full documentation programs, that refi would likely be the absolute quickest way (a couple of weeks) where HELOCs might take 3-4 weeks. Also depends how long ago you purchased the property so a few details there to work through but feel free to reach out if it's helpful to look at those.

    [email protected]734-645-7722
    Gold Star Mortgage Financial Group547 Reviews
    WebsiteView Page
    1Reply
  • Caleb Brown
    Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
    1y

    I would do a cash out refi if you are paying off a hard money loan. HELOCs get expensive if you have a balance for awhile. If you pull a HELOC to pay off the 50K you'll need to pay off that balance or it won't be worth it

    0Reply
  • Elias HalvorsonBusiness Member
    HI · Member since 2024 · 225 posts · 130 votes
    1y

    I would look at a HELOC first with any local banks/credit unions as sometimes they have unique programs. HELOCs typically have a lot less fees, etc. however, investment HELOCs tend to have pretty high rates so depending on how much you're borrowing a DSCR might be a better option. You haven't given a lot of information so it is tough to refine the suggestion. How much is the property valued? how much are you looking to take out? What is your credit score? All things that factor into a loan recommendation.

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  • Brandon Croucier
    Lender · Lake Havasu City, AZ · Member since 2024 · 700 posts · 285 votes
    1y

    I would just do a cashout refi, they can be done quickly if you get in what is needed fast.

    0Reply
  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    1y
    Quote from @Chad Chapman:

    We have a rental that we finished the remodel on. I was going to refi it but I like the idea of the heloc for a fast cash if needed. I'm torn in what to do and want to hear what some others have done when faced with this situation. No matter what I have to get 50k to pay off the hard money we used for the purchase and rehab. 


     It makes more sense to refi if you already have a ballooning note on this property. 

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  • Doug Clark
    Lender · Member since 2025 · 41 posts · 13 votes
    11mo

    A lot of investors I know weigh speed vs. cost here, if you need the funds immediately, HELOC makes sense; if you can wait a few weeks for better rates and stability, a refi could be smarter

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