Questions about Home Equity Loans/HELOC and rental properties
Hi
I currently own (fully paid off) a 2 bedroom townhouse that, according to sources I've looked up, would be worth around 110K as I recently put 10K into the house to fix it up and get it in pristine condition. I live in IL btw
I have a few questions
First, What is the difference between a Home Equity Loan and a Home Equity Line of Credit? What are the requirements for them? I currently make around 55K annually and have a credit score of just under 700 (688 last I checked) but it should be at above 700 come summer 2017 when I plan on moving out.
I want to borrow 50K so that I can pay off my student loans.
I'd also like to move out and get a bigger house as I'll be getting married next year. With a Home Equity Loan or a HELOC, is it possible to rent out the property that I borrowed against and use the rental income to pay off the 50K I borrowed? I spoke to a real estate agent and I should be able to rent out my house for around 1200$ minus 400$ for tax/insurance/association fees leaving 700-800 left to go toward paying off the 50K loan monthly
Finally, if you have a Home Equity Loan or a HELOC, can you still get a mortgage for another home? I'd have around 50K of my own money (not the loan) saved up to put down on a new house.
Simple version
Have a house worth 100-110K, near 700 credit score, 55K Annual salary. Want to borrow 50K to pay off student debt.
Can I rent out home after taking out equity loan or HELOC and use rental income to pay it off?
Can I get a mortgage for a separate house that I plan to live in myself, if I have an already existing equity loan or HELOC? I'd have around 45-50K for a down payment.