Heloc increase or Refinance

[Crystal Wilson]

I don't have a down payment saved, I spent my heloc, 50k, on investment properties. Now looking to buy another home, primary, but I don't have any money down. I could eather...

1. Refinance my FHA house to pay of the mortgage and heloc, cash out 10k. To qualify to buy another FHA loan, and have 10k down.

Or

2. Get an increase on my heloc of 25k.

I've already been approved for both. But can't decide.

I feel with 25k more I might be able to buy 2 houses with that and also have that much extra in my line of credit.

But I do need to refinance my FHA loan so hopefully I can approve for another FHA.

What do you think?

[John Warren]

@Crystal Wilson I would refinance the FHA and put permanent debt on the 1st house. This allows you to buy house #2 and get creative on that home. You will also get more advantageous financing on the 1st home while you are the owner occupant as opposed to once it is an investment property.