Hi Everyone, if a property gets gifted to me (tax consequences aside) from my parents and the title transfers to me, do I need to have it “season” or wait a certain amount of time before I can get a HELOC on the property?
My parents have 400k of equity (paid off) in the property and I’d like to utilize the equity as a down payment for a rental property.
Thanks,
Thomas
Hi Everyone, if a property gets gifted to me (tax consequences aside) from my parents and the title transfers to me, do I need to have it “season” or wait a certain amount of time before I can get a HELOC on the property?
My parents have 400k of equity (paid off) in the property and I’d like to utilize the equity as a down payment for a rental property.
Thanks,
Thomas
yes most banks will require 12 months to use market value after you take legal possession to obtain a HELOC against. However, some banks have an exemption to the 12 month if you won the property via court action or legal proceeding/inheritance.
It sounds like in this case the property was just gifted so the 12 months for most banks applies.
However, I am sure there might be some HELOC lenders who may consider 6-12 months as well.
is the gifted property now your primary residence ? asking because most HELOC lenders will only offer these lines on primary homes and not on 2nd homes or rentals