Investor · North Dallas, TX · Member since 2019 · 7 posts · 0 votes
Hey all,
I was hoping to get a HELOC on my primary residence to use as a down payment or towards my next property. I am in Texas.
I bought a damaged house in April 2020 with hard money and refinanced into a conventional loan. I added a bedroom, renovated everything, and rented out my 3 extra rooms.
The equity has gone up quite a bit between the improvements and the hot market.
My plan is to leverage the equity to buy my next property. I owe around $225k and it will appraise for $350k. Over a year ago it appraised for $327k before I added a bedroom, so I assume the appraisal now will be even higher.
My lender told me they could only lend an amount much smaller than I was expecting. Am I missing something?
I seem to remember there is some law about HELOCs in Texas that might limit what I’m trying to do, but I can’t find it.
Has anyone else had success using a HELOC on their primary residence with numbers similar to these?
Real Estate Broker · Canby, OR · Member since 2012 · 127 posts · 37 votes
4y
@Gordon Sheehan, it depends on the lender, so it may be worth shopping around. I did this and got a HELOC on our primary when we had a bunch of equity. Our lender would do a 90% cumulative loan to value. So the HELOC amount and our first could only be up to 90% of the appraised value.