Hi all! My husband and I are just getting our toes in the water and planned to use a HELOC for our first investment property. We have about $90k we'd be able to utilize plus cash we've saved up.
I'm now realizing HELOCs are unavailable or higher rates than before (ex- 1.99% for 6 mos, then 6% after). Is that still reasonable or is there another route that you're finding works better for BRRRR? We'd rather not jump in with a HML just yet but aren't entirely against it. Just feel more comfortable getting one under the belt first.
Rental Property Investor · Melbourne, FL · Member since 2011 · 3k+ posts · 2k+ votes
5y
Pull your own credit score, and start calling around. Say, with my FICO of (your FICO), what terms do you offer? That one set of terms is not how all lenders will present theirs, and you will find a lot of variety. Some will do a desktop appraisal while others will do an internal appraisal, which can change the value a whole lot. Some do interest only, while others amortize. Some are fixed for so many years and then adjust, while others….you get the picture. Start with credit unions.