HELOC to buy a new primary resident
Hello everyone,
I'm originally from Columbus, GA, now residing in central Texas. I have a huge family back in Columbus,GA-Phenix City area, and looking to start my real estate investing there.
My mom owns a home in an undesirable area, so I have been attempting to get a HELOC on her home and upgrade her living situation with my first property, then turn her current house into a rental temporarily. She doesn't want to sell the the house, because my brother wants to rent it.
Here's the concern: we tried getting a HELOC with a local credit union and we were told that they wouldn't lend on an investment/secondary home. They won't lend for her to buy a new primary resident. FYI: I will be her co-burrower for a new primary residence loan in Columbus, GA-Phenix City, AL area. We've already been pre-approved.
I've considered purchasing the new property as an investment loan instead, but that will decrease our purchasing power as we will need 20% down vs 5%. She is gifting me the HELOC to use towards down payments for future rentals, so I would like the flexibility of only putting 5% down on this first property, if needed. Also, since my mom will be living in the home, we want to take advantage of homestead exemption.
My questions for Columbus, GA investors:
Who are you using for HELOC loans?
How are you getting HELOC on investment/secondary property?
Hi. I am in FL but I just helped a client in your situation. You can accomplish a HELOC in your situation by making what ever property you are getting the HELOC for your primary and turning the others into investments. Ex: My client needed a HELOC for the down payment for a new home. We accomplished it by keeping her existing home off of the market until the funding is complete. You can reach out to me directly if you have any specific questions.
-Tiphany Weeks