I have a house picked out off MLS. Between 50k and 60 purchase price. So lender options limited. It is an investment home. Prefer 20% down if possible. Looking for a recommendation for someone local, preferably a credit union. Thanks! Daniel
You don’t need a heloc. You need a mortgage. Anyone should give you a mortgage on this property. Call 5 local banks and ask for someone in the mortgage department. Issue is.... 50k house is not likely financabke and if it is you don’t want to waste a loan on a 50k house certainly not a conventional loan.
Where is this house piny woods? 37406? do you have any experience with low income? It’s not a good place to start. I’m happy to help send me a message. This post will get taken down you’re not allowed to ask for recommendations. Good luck
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My company does 1st mortgage HELOCs on rentals up to 70%, which is the highest you will find for a 1st position HELOC. I can pm you a referral in you area if you need one. A local credit union should be able to give a 1st mortgage up to 85%. Try them 1st, come to me for the referral if you want the HELOC.
You can only get a Heloc on a property you already have, whether primary or investment. The amount you receive would be based on a percentage of the equity you have in it. I would always recommend doing a 1st position Heloc if you do own a property already that you can leverage since you are buying an asset vs. liability. You should only get a loan if you have an exit strategy to pay it off quickly by removing the interest. My wife and I do velocity banking. People always advise putting a renter in and have them pay down the mortgage. Only problem is is they are really just paying the interest in the front loaded interest beginning years. We own all of our properties free and clear through velocity banking. Loan's are not liquid......with the Heloc you can reuse that money again that you have paid down, whether is 1k or the whole 50K. Always remember, wealth is created with leverage and cash flow.... Be a blessing to others