HELOC Options? Here are my numbers...

[Conor Kearns]

Hello BP Forum,

I have property coming up on 6 months of mortgage seasoning. I am wanting to use a HELOC to pull out around 20K, however, I am running into issues finding a institution offering HELOCs with less than 1 year of mortgage seasoning and who is willing to work with an amount this small.

Any suggestions?

Here are my figures:

- Current Principal Balance: $79,598

- Comps: $120K - $130K

Thank you,

Conor

[Andrew Postell]

@Conor Kearns is this on an investment property?  Finding lenders in Texas that will do Lines of Credit on investment properties is REALLY hard...but I certainly have not seen any that have any seasoning whatsoever.  Let me know what type of property this is and that might be able to help me point you in the right direction.

[Conor Kearns]

Andrew,

Thank you for your response. The property is a single-family home in Houston, TX that was purchased as an investment property back in late June 2019.

I appreciate any insight!

-Conor

[Timothy Doenges]

@Conor Kearns have you compared the HELOC numbers against, say, a cash-out refinance?

I have seen some lenders that will do a LOC secured on a CD or another form of deposit with the bank that does the LOC.

Too complicated to get a cash-out refi on the house (130k * 80% = 104k, minus current loans), then taking that amount and either investing it or putting it into a CD to secure a LOC?

Best of luck!

Tim