I bought a home while in graduate school and shortly after graduation relocated out of the area. After contemplating selling, I ended up renting out the property. Now that I am in a new area I am interested in buying a primary residence (which I will likely move out of in a year and rent out). The property I own is worth about 50k and I am looking to use the equity in that property as my down payment for a new home that is 150-200k.
What are my options for accessing that equity?
HELOC vs Loan? Which is better in the long term?
How much of my 401k can I use?
Should I aim to find the HELOC or Loan with the same lender I am getting my mortgage through?
I am planning to purchase the new home in 8 months, should I get the LOC now or wait?
Are there any banks that will use the home as collateral and not require a deposit or PMI?